Editor's note: This bunch of miscreants highlighted in this article are part of a larger cabal, "THE JUDICIAL-NURSING HOME COMPLEX" Lucius Verenus, Schoolmaster, ProbateSharks.com
Pharmaceutical firm Omnicare agrees to settle whistle-blower lawsuit
Kickbacks to nursing home operators were alleged
August 25, 2012
By David Jackson and Gary Marx, Chicago Tribune reporters
Court documents filed this week show the giant pharmaceutical firm Omnicare Inc. has agreed to settle a whistle-blower lawsuit involving millions of dollars in alleged kickbacks to one of Illinois' most prominent nursing home families.
While Omnicare reached a financial settlement in principle, the terms have not been publicly disclosed. It is not clear if Omnicare's board has approved the agreement, although a lawyer involved in the case suggested that will likely happen.
Chicago nursing home operators Philip Esformes and his father, Morris Esformes, are not part of the settlement. They continue to fight federal court allegations that Omnicare paid them a kickback by significantly inflating the purchase price it paid in 2004 for a pharmacy company they purportedly controlled.
According to the lawsuit by a whistle-blowing former pharmacy company executive, Omnicare's $32 million purchase of the pharmaceutical company linked to the Esformes family included roughly $16 million that was a kickback to secure long-term pharmacy contracts with nearly three dozen nursing homes the Esformeses operated or influenced.
Philip Esformes said through his attorney that he "has rejected offers of settlement and adamantly insists he has done nothing wrong."
Morris Esformes said through his attorney that "the settlement does not speak to Morris Esformes' position and Mr. Esformes continues to insist he had done nothing wrong."
Omnicare, which supplies medicine to millions of nursing home residents in facilities across the U.S., declined to comment Friday but has previously told the Tribune the allegations are without merit.
The case was brought under the False Claims Act, which allows private citizens to file lawsuits against companies and individuals defrauding the government and recover funds on the government's behalf.
dyjackson@tribune.com
gmarx@tribune.com
http://articles.chicagotribune.com/2012-08-25/business/ct-biz-0825-omnicare-settle-20120825_1_omnicare-whistle-blower-lawsuit-philip-esformes
Sunday, August 26, 2012
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