Omnicare Pays Nearly $100 Million to Resolve Medicaid Fraud Charges: Second Omnicare Settlement With Chicago Whistleblower P...(was fired by Omnicare after reporting im...),Health

Date:11/3/2009

was fired by Omnicare after reporting improper practices. In November 2006, Omnicare had settled other Medicaid fraud allegations by the same Chicago pharmacist, Bernard Lisitza, by paying nearly $50 million to the United States and 43 states. (Northern District of Illinois, 01-C-7433) Both cases were handled by nationally recognized whistleblower lawyers, Michael I. Behn and Linda Wyetzner, of Behn & Wyetzner, Chartered in Chicago, Illinois.

"The settlement underscores the government's commitment to prosecuting Medicaid fraud at pharmacies," said Behn, a former federal prosecutor. "Pharmacies are the gatekeepers to Medicaid payments for drugs. There can be zero tolerance for kickbacks."

According to the settlement agreement, Johnson & Johnson had made quarterly rebate payments on Omnicare's purchases of Risperdal® under rebate agreements executed in April 1997 and March 2000. The rebate agreements conditioned payment of the rebates upon Omnicare engaging in an "active intervention program" to convince physicians to prescribe Risperdal® and requiring that all competitive anti-psychotic products be "Prior Authorized for Risperdal® failure." The government alleged that Omnicare failed to disclose to physicians that such intervention activities were a condition of receiving such rebate pay
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