Omnicare Pays $120M To Settle Nursing Home Kickback Suit

Law360, New York (October 23, 2013, 12:48 PM ET) -- Omnicare Inc. has agreed to pay $120 million to settle a whistleblower's False Claims Act suit claiming the pharmaceutical provider violated the Medicare anti-kickback statute by giving discounts to nursing homes in exchange for drug referrals, the company announced Wednesday.

Omnicare said it would also pay additional attorney fees to settle former employee Donald Gale's qui tam suit, which accused the company of giving nursing facilities pricing and “prompt payment” discounts via contracts in exchange for the facilities inducing referrals — an exchange known as swapping....
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