Omnicare | Securities Fraud Lawsuit, Class Action Lawsuit | False and Misleading Statements, Medicare and Medicaid Fraud, Artificially Inflated Stock Price
Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Omnicare, Inc. (“Omnicare”) and certain of its officers and directors violated the Securities Exchange Act 1940. Omnicare provides pharmaceutical care for the elderly. Omnicare is also the largest U.S. provider of professional pharmacy-related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings.
For over 40 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of the common stock of Omnicare, Inc. (NYSE: OCR), during the period between January 10, 2007 and August 5, 2010, and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP to discuss your rights, including as to recovery of your losses or to obtain additional information.
False and Misleading Statements by Omnicare
A class action lawsuit has been commenced in the United States District Court for the Eastern District of Kentucky on behalf of purchasers of the common stock of Omnicare. The shareholder class action suit alleges that Omnicare failed to disclose that it was engaged in a widespread scheme to defraud the federal Medicare program and several state Medicaid programs by submitting claims for reimbursement for services that did not conform to Medicare and Medicaid regulations.
Omnicare Continues to Engage in Medicare and Medicaid Fraud
This is not the first securities fraud lawsuit against Omnicare. In 2006, Omnicare was involved in the largest fraud case in the history of the state of Michigan for allegedly cheating Michigan’s Medicaid health program where they agreed to pay $52.5 million. Following that year, Omnicare paid another $49.5 million to settle claims by the U.S. government and 42 states on claims that it overcharged for drugs it provided to seniors. Subsequently in 2009, Omnicare was also the subject of investigation by the U.S. Attorney’s Office in Massachusetts when Omnicare agreed to pay $75 million to settle claims in two qui tam actions for violations of the False Claims Act and Anti-Kickback Statute. Despite having paid tens of millions of dollars, Omnicare continues to engage in Medicare and Medicaid fraud.
Artificially Inflated Stock Prices
Omnicare’s false and misleading statements concerning Omnicare’s compliance with applicable federal and state laws related to its Medicare and Medicaid billing practices, as well as its financial results stemming from improper Medicare and Medicaid submissions, lead to artificially inflated prices during the Class Period.
After Omnicare disclosed the existence of the qui tam actions, the ongoing Medicare and Medicaid fraud and the abrupt resignation of its President and CEO, Joel Gemunder, the Company’s stock price dropped $2.73 per share, down 10.8% from $25.26 per share on August 4, 2010 to $22.53 per share of August 5, 2010, wiping out over $400 million in market capitalization.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of Omnicare’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please complete the form on the left or CALL TOLL FREE (888) 252-0048.