A federal court judge in Chicago Tuesday dismissed a whistle-blower case against long-term care pharmacy provider, Omnicare, following the finalization of an undisclosed settlement that took nearly a year to hammer out.
The suit, brought against the company in 2007 by whistle-blower Maureen Nehls, alleged that Omnicare submitted false claims for reimbursement from Medicare and Medicaid and paid a kickback to Philip Esformes, one of the owners of Total Pharmacy Services (a pharmacy company Omnicare purchased in 2004), and his father, Morris Esformes.
In August 2012, Omnicare agreed to settle the suit. With the parties finally in agreement on the settlement, Judge John Tharp, Jr., of the U.S. District Court for the Northern District of Illinois Eastern Division, ordered the case dismissed with prejudice – meaning the case can not be brought against Omnicare again – on Tuesday.
[See also: Omnicare to settle whistle-blower lawsuit alleging kickback scheme.]
The Esformes' did not agree to a settlement and are fighting the allegations that they paid a kickback to Omnicare. They are scheduled to go to trial in August.
The terms of the Omnicare settlement were not disclosed. Omnicare did not return a request for comment. Matthew Organ, one of Nehls' attorneys, told Healthcare Finance News that no one is commenting on the settlement now because the Esformes' trial hasn't been concluded.