CVS Health and its embattled Omnicare unit have agreed to pay $440 million to the Department of Justice to satisfy a nearly $950 million judgment against the company as part of an ongoing fraud case.
In April 2025, a federal jury ruled that Omnicare submitted more than 3.3 million fraudulent prescription claims between 2010 and 2018, earning $135.6 million in overpayments as a result. Then, in July 2025, a judge ordered Omnicare to pay $948.8 million in fees and damages as part of the case.
In the new court docs, CVS said that it has agreed to make an initial $130 million payment within 14 days of the agreement's effective date. The remaining $310 million must be paid out by March 15, 2028.
The agreement with DOJ is contingent on the closure of Omnicare's sale to GenieRx Holdings, according to the filing. As it navigated the legal fallout of the False Claims Act case, Omnicare filed for bankruptcy in September 2025, and CVS announced plans to sell to GenieRx in May of this year.
"Together, the Agreements establish the framework for the Debtors to confirm consensual chapter 11 plans, eliminate the need for protracted and expensive litigation, resolve the treatment of DOJ’s and CVS’ claims, and provide the best chance that all other general unsecured claims will be paid in full," per the court filing.
A spokesperson for CVS Health said in a statement to Fierce Healthcare that "agreements are not an admission of liability or wrongdoing and were agreed upon to avoid the time and expense of further litigation."
"We’re pleased to put this matter behind us as part of a successful conclusion of the Omnicare chapter 11 case," the spokesperson said.
As part of its bankruptcy proceedings, Omnicare said it would seek $110 million in debtor-in-possession financing to keep its business running and would use that time to evaluate its future, including a potential sale or restructuring.
The sale to GenieRx is expected to close by the end of this year, the company said in May. GenieRx offers multiple virtual health and medication services, and is a joint partnership between Milrose Capital, a private equity firm, and Integro Asset Management, a healthcare-focused investment firm.
At the time, CVS said the sale would allow Omnicare to "strengthen its service." The healthcare giant acquired Omnicare in 2015, and in the fraud case was found to have incited the unit to submit about 1 million of the fraudulent claims in question, though the jury determined that none of those submissions caused injury to the federal government.
The legal drama stems from a whistleblower lawsuit that was filed in 2015 by a former pharmacist at Omnicare. The Justice Department joined the case in 2019.