CVS Omnicare headed for bankruptcy court
Case Summary
CVS Health's subsidiary Omnicare is headed for bankruptcy court after being found liable for fraudulent billing to the government. The company, which was acquired by CVS Health for nearly $13 billion in 2014, faces a $1 billion judgment for improper billing practices. GenieRx Holdings LLC has proposed a $250 million cash payment to CVS in exchange for its troubled Omnicare subsidiary, marking a significant turn in Omnicare's financial trajectory.
Stage
Court order issued
Timeline
1 event
Coverage
1 article
Sources
1
Key Issues
- • Omnicare bankruptcy
- • Government fraud liability
- • $250 million settlement proposal
update What Changed This Week
Case Timeline
1 eventCVS Omnicare headed for bankruptcy court
CVS Health's acquisition of Omnicare, a nursing home pharmacy company, has led to the company facing bankruptcy after being found liable for fraudulent billing and ordered to pay nearly $1 billion. Despite continuing operations during bankruptcy, a proposal has been made for GenieRx Holdings LLC to pay CVS $250 million for the troubled subsidiary, with an auction set for May 5 to determine the company's fate.