Judge Approves Bankruptcy Plan for CVS' Omnicare Unit
A U.S. bankruptcy judge approved the reorganization plan for Omnicare, a pharmacy services unit of CVS Health (CVS), marking the end of its Chapter 11 proceedings after nearly a year in bankruptcy. The court-approved plan allows Omnicare to settle an almost $950 million judgment from a federal fraud case and pay all creditors in full by liquidating assets or reorganizing them. Omnicare, which was acquired by CVS Health in 2015 for its medication management services targeting long-term care facilities, became embroiled in legal troubles after being found guilty of submitting false claims to Medicare, Medicaid, and Tricare. The unit sold its operations to GenieRx Holdings—a partnership between Milrose Capital and Integro Asset Management—for $250 million earlier this year. The plan also includes a settlement with the Department of Justice (DOJ), where CVS agreed to pay $130 million immediately and an additional $310 million by March 2028. The resolution is expected to ease financial pressure on CVS as it focuses on broader business improvements, particularly in its insurance segment.
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Topics: bankruptcy CVS Medicare/Medicaid fraud Omnicare pharmacy services