By Lawrence Hurley
WASHINGTON, March 3 The U.S. Supreme Court
agreed on Monday to hear an appeal filed by Omnicare
Inc., the leading U.S. provider of pharmacy services to
the elderly, in a securities class action case filed by
investors who say the company made untrue statements prior to a
Plaintiffs who subscribed to the December 2005 offering sued
after whistleblower lawsuits claimed the company paid kickbacks
to nursing homes and received kickbacks from drug companies.
Omnicare paid just under $150 million to settle the
whistleblower claims. The subsequent securities lawsuit filed by
several pension funds focused on statements the company had made
saying it was in compliance with the law.
A federal judge in the Eastern District of Kentucky
dismissed the plaintiffs' lawsuit in February 2012, saying they
had failed to allege that Omnicare had knowingly made an untrue
The Cincinnati-based 6th U.S. Circuit Court of Appeals
revived the lawsuit in a May 2013 ruling, in which it said the
plaintiffs only had to claim that the statement was objectively
untrue and not that the company knew it was false at the time it
was made. Omnicare said in court papers that lower courts are
now split on that question.
The court will hear oral arguments and issue a ruling in the
case during its next term, which starts in October and ends in
The case is Omnicare v. Laborers District Council, U.S.
Supreme Court, 13-435.