CVS Omnicare Hit with $949 Million Judgment in False Claims Case
In July 2025, a New York federal judge ordered Omnicare, a CVS subsidiary, to pay $948.8 million for submitting millions of invalid prescription claims to Medicare, Medicaid, and TRICARE.
What Happened?
Between 2010 and 2018, Omnicare allegedly:
- Submitted over 3.3 million false claims for prescriptions that lacked valid physician authorization.
- Dispensed drugs without ensuring required renewal approvals.
- Continued billing government programs despite knowing the prescriptions had expired or were out of refills.
Whistleblower Uri Bassan, a former Omnicare pharmacist, brought the allegations forward.
The Penalties
- DOJ sought $542 million in penalties for the invalid claims.
- The judge tripled damages under the False Claims Act, adding $406.8 million.
- Total liability: $948.8 million.
CVS has said it intends to appeal.
The Whistleblower’s Role
As a pharmacist inside Omnicare, Bassan saw firsthand how systemic failures led to unlawful billing. By filing a qui tam action, he triggered one of the largest FCA judgments rendered by a jury against a healthcare provider.
Why It Matters
- Massive Scale: Nearly a billion dollars in penalties highlights the severity of Omnicare’s misconduct.
- Patient Safety: Dispensing drugs without valid prescriptions risks harm to vulnerable patients, particularly the elderly.
- Whistleblower Impact: This case underscores how professionals within healthcare are often the first line of defense against fraud.
Bottom Line: The Omnicare judgment is a stark reminder that corporate shortcuts in patient care and compliance come at a heavy cost. Thanks to whistleblowers, fraudulent practices can be brought to light—even against some of the country’s largest healthcare companies.
Case: U.S. ex rel Bassan v. Omnicare Inc., No. 15-04179 (USDC SDNY).