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Drug firm to settle whistleblower suit over alleged nursing home kickbacks in Goldberg Kohn case

August 24, 2012
Chicago Tribune

Court documents filed Thursday show the giant pharmaceutical firm Omnicare Inc. has agreed to settle a whistleblower 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 is likely.

Chicago nursing home operators Philip Esformes and his father, Morris Esformes, are not part of the settlement and 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. To read the complete article click here.

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