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Miller Barondess Files Suit on Behalf of ModernHealth Against CVS/Omnicare for Fraud

November 26, 2018

LOS ANGELES--(BUSINESS WIRE)--Nov 26, 2018--The lawsuit, filed on November 13, 2018 in Los Angeles County Superior Court, alleges that Defendants CVS and Omnicare defrauded Plaintiff ModernHealth Holdings Inc. and seeks recovery of substantial compensatory and punitive damages.

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Per the lawsuit, CVS/Omnicare, through a subsidiary, acquired the assets of the plaintiff, ModernHealth. ModernHealth provided medications and pharmacy supplies to more than 150 skilled nursing facilities and assisted living facilities in Southern California.

According to the lawsuit, CVS/Omnicare alienated almost every one of the nursing homes and assisted living facilities that ModernHealth previously serviced. Within the first year alone, the vast majority of facilities terminated their agreements after complaining that CVS/Omnicare: (1) delivered the wrong prescriptions; (2) failed to fill prescriptions; (3) delivered prescriptions late; (4) engaged in price gouging; and (5) failed to respond to customer complaints. As a result, nursing homes complained that CVS/Omnicare put patients’ health and lives at risk.

The lawsuit alleges that CVS/Omnicare is attempting to blame ModernHealth for its wrongdoing; and that CVS/Omnicare is engaging in a fraudulent scheme to withhold millions of dollars due ModernHealth. The suit further alleges that CVS/Omnicare’s wrongdoing is part of a pattern of wrongful corporate conduct. In recent years, CVS and Omnicare have been sued and fined hundreds of millions of dollars by the Department of Justice and other federal and state governmental agencies. These regulatory actions include Medicare fraud; kickbacks; forged prescriptions for addictive painkillers; failing to report the loss of controlled substances; and multiple other violations of law.

ModernHealth’s lawyer, Skip Miller, a partner at Miller Barondess, LLP in Los Angeles stated: “We very much look forward to our day in Court, putting this all before a judge and jury, and getting justice for our client.”

See attached Complaint (Case No. 18STCV05104).

View source version on businesswire.com:https://www.businesswire.com/news/home/20181126005745/en/

CONTACT: Miller Barondess, LLP

Skip Miller

(310) 552-5251

smiller@millerbarondess.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: CONVENIENCE STORE HEALTH PHARMACEUTICAL PROFESSIONAL SERVICES LEGAL RETAIL

SOURCE: Miller Barondess, LLP

Copyright Business Wire 2018.

PUB: 11/26/2018 04:11 PM/DISC: 11/26/2018 04:10 PM

http://www.businesswire.com/news/home/20181126005745/en

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