$950 million judgment in a case in which they were found liable for fraudulently dispensing drugs without valid prescriptions to residents of assisted living communities and other non-skilled-nursing residential long-term care facilities.
A July 1 filing in US Bankruptcy Court for the Northern District of Texas shows that Omnicare and CVS Health approved the settlement with the US Department of Justice to resolve its claims with the federal government. The agreements were reached after “months of good faith, arms-length negotiations,” according to a court document.
“The agreements are not an admission of liability or wrongdoing, and [they] were agreed upon to avoid the time and expense of further litigation,” a CVS Health spokesman told McKnight’s Senior Living. “The Omnicare estate and Unsecured Creditors’…
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.