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The U.S. government has requested a collective $706 million civil penalty against Omnicare Inc. and its parent company, CVS Health Corp., following a jury verdict finding the companies submitted millions of false billing claims under the False Claims Act (FCA).

The request includes $542 million in penalties for Omnicare and $164.8 million for CVS Health Corp., reflecting their respective roles in submitting approximately 3.3 million false claims for prescription drugs dispensed to long-term care facility patients without valid prescriptions.

In court filings, the government emphasized that the sought penalties represent only a small fraction of the potential FCA fines, aiming to avoid excessive penalties as Omnicare and CVS seek to overturn the verdict or obtain a new trial. The government maintains the penalties are reasonable and constitutional.

The government also challenged arguments from the defendants seeking to cap Omnicare’s penalties at the $135 million in damages found by the jury and to avoid penalties against CVS Health Corp., asserting that statutory law requires civil penalties plus treble damages where liability is proven.

Omnicare pharmacist Uri Bassan initially filed the suit in 2015 on behalf of the government and various states, with government intervention in 2019. The case centers on Omnicare’s distribution of prescription drugs with expired or invalid prescriptions from 2010 to 2018 and subsequent reimbursement claims to healthcare programs, violating the FCA and state laws.

Both Omnicare and CVS Health Corp. have moved for judgment as a matter of law or a new trial, disputing the sufficiency of evidence supporting the jury’s findings and the calculation of damages.

A federal judge recently denied CVS Health Corp.’s motion to dismiss, ruling that the company knowingly caused Omnicare to submit false claims and was complicit in misrepresenting compliance with federal dispensing laws.

The government is represented by the U.S. Attorney’s Office for the Southern District of New York. Omnicare and CVS Health Corp. are represented by Williams & Connolly LLP.

Case: United States of America ex rel. Uri Bassan et al. v. Omnicare Inc., Case No. 1:15-cv-04179, U.S. District Court for the Southern District of New York.