Overview

• Omnicare and affiliates filed for Chapter 11 on Sept. 22 in the U.S. Bankruptcy Court for the Northern District of Texas, listing up to $500 million in assets and $1 billion to $10 billion in liabilities.
• The company obtained an agreement for $110 million in debtor-in-possession financing, subject to court approval, and says pharmacy services, employee pay, and postpetition vendor payments will continue.
• The automatic stay triggered by the filing is expected to pause federal efforts to collect on the $949 million judgment while restructuring or a potential sale is evaluated.
• The civil judgment—Omnicare’s largest unsecured claim—stems from a whistleblower case the government joined in 2019 alleging drugs were dispensed on stale or invalid prescriptions from 2010 to 2018.
• A jury found more than 3 million false claims and the court entered roughly $949 million after trebling and penalties; the jury also found CVS caused Omnicare to submit the claims, and a bid to overturn the ruling was denied in August.