Omnicare Agrees to Pay $120 Million for kickback discounts to nursing homes

Major pharma service provider Omnicare has agreed to pay $120 Million to settle a whistleblower suit brought by former employee Donald Gale on behalf of the Government under The False Claims Act.

The allegations asserted that Omnicare engaged in a kickback scheme called swapping in which Omnicare provided nursing homes below market discounts on prescription drugs for Medicare A patients in exchange for referrals of Medicare D patients, which Omnicare charged higher prices for the same prescription drugs

In November 2009, Omnicare paid $98 Million to resolve allegations that it angaged in kickback schemes with several parties.

Jeffrey Newman represents whistleblowers.