Facing a $949 million federal court judgment for improperly billing charges to Medicaid, Medicare and Tricare, Rhode Island-headquartered pharmacy services company Omnicare Inc. filed for Chapter 11 bankruptcy protection Monday in the Northern District of Texas.
Omnicare, which is a subsidiary of CVS Health Corp., and 98 of its affiliated businesses cited more than $1 billion in liabilities owed to scores of creditors, but only $100 million to $500 million in assets.
The company stated Monday that the Chapter 11 filing will give it time to work on resolving the federal legal dispute, which is the huge majority of Omnicare’s liabilities. Company officials said it has secured $110 million in funds to finance its operations.
In May, a New York jury found that Omnicare fraudulently dispersed medications without valid prescriptions under the False Claims Act. Omnicare is appealing.
Three Texas companies — Fort Worth-based Omnicell ($727,109), Richardson-based Dynamic Infusion Therapy ($79,410) and Tyler-headquartered Drake Management Services ($56,944) — are listed as creditors.
Omnicare has hired Haynes Boone bankruptcy partner Ian Peck as its legal advisor and Alvarez & Marsal as its restructuring advisor.
The Chapter 11 filing has been assigned to Bankruptcy Judge Scott Everett.
The case is Omnicare LLC, NDTX, Case No. 25-80486.