As announced on Thursday, May 26, 2017, Omnicare Inc., the nation’s largest nursing home pharmacy and company, providing pharmaceutical services to medical providers and patients across the United States, asked a Massachusetts federal judge to approve a $13 million settlement to resolve allegations of fraudulent Medicaid claims and kickback violations.

The Medicaid fraud lawsuit alleged that Omnicare solicited and received kickbacks from pharmacies that prescribed the antidepressant drug Remeron.

According to Law360, Omnicare Inc. had asked the federal judge to “approve a $13 million settlement to end a False Claims Act case brought by whistleblowers alleging fraudulent Medicaid claims and kickbacks to pharmacies that prescribed an antidepressant drug.”

According to terms stated in the Medicaid fraud agreement, Omnicare Inc. states that it will pay the $13 million and include an interest rate of 1.64 percent.

The whistleblowers, James B. and Richard T., alleged that the drug maker Organon would “pay kickbacks to long-term care pharmacies that prescribed its Remeron antidepressants.”

According to Law360, the whistleblowers allege that between 1999 and 2005, Organon proposed kickbacks to Ominicare and PharMerica if they gave Remeron treatment “preferred status.” They state that the kickbacks, however, are to the detriment and disadvantage of federal health programs like Medicaid.

Omnicare Settles Without Admitting to Medicaid Fraud

According to the Medicaid fraud settlement agreement, moreover, Omnicare is not admitting any liability for the alleged Medicaid fraud, and neither are the whistleblowers admitting that their claims are not well founded. The Medicaid fraud agreement also stated that “Ominicare expressly denies the allegations in relators’ complaint.”

The whistleblowers’ representatives said of the Medicaid fraud agreement that they thought that it was a “fair resolution under the circumstances,” Law360 reports. He also stated that “even more important than the dollar amount, however, was the government’s declination of the case.” He adds that his firm had “spent millions of dollars of our money, the government didn’t have to spend a nickel.”

Omnicare Inc. has been a CVS-owned health company since it was purchased by the American retail pharmacy and health care company in 2015. It is a spinoff of healthcare businesses from W.R. Grace and Company.

According to the Medicaid fraud agreement, “[T]his matter involved Omnicare only and no allegations were made against CVS Health’s other businesses, including CVS pharmacy and CVS Caremark.”

A CVS spokesperson also added, “CVS Health is committed to the highest standards of business practices and there was no admission of wrongdoing. The company agreed to settle this matter to avoid the expense and uncertainty of protracted litigation.”

Omnicare was previously sued by the Federal Trade Commission in 2012 for alleged violations of anti-trust law, after it attempted a hostile takeover of its rival PharMerica.

The Medicaid Fraud Lawsuit is Case No. 1:07-cv-12153, in the U.S. District Court for the District of Massachusetts.