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SD, Other States Settle Lawsuit Against Omnicare

August 29, 2014, 3:30 PM

SD, Other States Settle Lawsuit Against Omnicare

The state's attorney general says South Dakota has recovered more than $170,000 after settling a whistle blower lawsuit with a Cincinnati-based company that allegedly engaged in a kickback scheme with skilled-nursing facilities nationally.

A Friday statement from Attorney General Marty Jackley's office says Omnicare Inc., allegedly gave discounts to some skilled-nursing facilities to keep the company as their drug provider for elderly Medicare and Medicaid recipients.

The company is the nation's largest provider of drugs and pharmacy services to skilled-nursing facilities.

The federal government will retain about $93,000 of the total amount recovered by South Dakota. The remaining $78,000 will go to the state general fund to offset alleged Medicaid damages in the case.

Jackley's office says South Dakota worked with other states and the federal government on the matter.

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