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Berger & Montague, P.C. Announces That Omnicare, Inc. Agrees to Pay $120 Million to Settle Kickback Allegation
Date:10/23/2013

participate in the Medicare Part D prescription-drug benefit program, to Omnicare. Omnicare then charged the government full price for their prescription drugs and other pharmacy services. The HHS Office of Inspector General has made clear since 1999 that swapping is prohibited by the Anti-Kickback Statute.

The False Claims Act, also called "Lincoln's Law," was first signed by President Lincoln in 1863. Amendments in 1986 made it the primary weapon of the United States against fraud and abuse by government contractors. The FCA permits a private citizen like Mr. Gale to bring a case in the name of the United States, and to recover a portion of any recovery. If the Justice Department approves the Omnicare settlement, Mr. Gale's share of the proceeds will be 25 to 30% of the federal recovery.

Daniel R. Miller, a shareholder at Berger & Montague and the firm's lead lawyer on the case, explained the seriousness of the allegations: "The delivery of pharmaceuticals to our elderly and our infirm is critical to their care, and we allege that Omnicare corrupted this system by bribing nursing home owners. Our client, Donald Gale, should be commended for bringing this practice into the light of day." Berger & Montague's Shauna Itri, who issued more than 75 subpoenas to nursing home owners as part of the investigation, continued: "No one is above the law. This litigation proves that one person really can make a difference."

The settlement resolves only federal claims relating to so-called per diem contracts. Omnicare faces the state per diem claims in another whistleblower lawsuit pending in the District of New Jersey, captioned U.S. ex rel. Silver v. Omnicare, Inc., et al., Case No. 1:11-cv-01326-NLH. Berger & Montague is lead counsel in that case.
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SOURCE Berger & Montague, P.C.
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