December 22, 2014 / 11:45 PM / 5 years ago

Justice department alleges Omnicare received kickbacks from Abbott Labs

(Reuters) - The U.S. Justice Department has filed a complaint against Omnicare Inc, alleging that the largest U.S. provider of pharmacy services to the elderly received millions of dollars in kickbacks from Abbott Laboratories.

Omnicare received the kickbacks for recommending Abbott’s prescription drug, Depakote, for epilepsy in dementia patients in nursing homes it serviced, the department alleged in a statement on Monday.

Omnicare allegedly disguised the kickbacks from Abbott as “grants” and “educational funding,” the department said.

Omnicare could not be immediately reached for comment.

The company agreed to a $124 million settlement with the Justice Department earlier this year to resolve allegations that it paid kickbacks to secure contracts to supply drugs to nursing homes with Medicare and Medicaid patients.

Omnicare shares closed at $73.72 on the New York Stock Exchange on Monday.

Reporting by Rosmi Shaji in Bengaluru; Editing by Kirti Pandey

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