Drug dispensing service Omnicare will pay $98M to settle federal investigation into kickbacks

Omnicare will settle kickback cases for $98M

NEW YORK — Omnicare Inc., which dispenses drugs to nursing homes and long-term care facilities, will pay $98 million to settle allegations it paid kickbacks to nursing homes to gain business and also received kickbacks for buying and recommending drugs.

The U.S. Department of Justice says Omnicare paid a $50 million kickback to two Atlanta nursing home chains, who were among its largest customers, to keep their business.

The company, based in Covington, Ky., also allegedly got kickbacks for buying drugs from Ivax Pharmaceuticals, and from Johnson & Johnson for recommending its anti-psychotic drug Risperdal.

Omnicare denies any wrongdoing. Ivax is also paying $14 million to end the investigation.