Omnicare Faces Fresh Suit Over Alleged Medicare Fraud

Law360, New York (October 25, 2011, 8:14 PM EDT) -- Nursing home operator Omnicare Inc. was hit Friday with a putative shareholder class action in Kentucky, marking the latest suit alleging the company hid continued Medicare and Medicaid fraud even after reaching several multimillion-dollar settlements with state and federal authorities.

The suit alleges Omnicare hid continued Medicare fraud until August 2010, when it revealed a 2009 qui tam suit brought by John Stone, the company’s former vice president of internal audit. The federal government has since joined Stone's whistleblower suit.

Stone’s suit alleges further fraud at...
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