Robbins Umeda LLP Announces an Investigation of Omnicare, Inc.
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Omnicare, Inc. (NYSE: OCR). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
Robbins Umeda LLP’s investigation focuses on whether members of the board of directors at Omnicare breached their fiduciary duties to shareholders and maintained woefully inadequate controls to the detriment of the company and investors. In particular, the firm is investigating allegations that Omnicare engaged in a scheme to defraud the federal Medicare program and several state Medicaid programs by submitting claims for reimbursement for services that did not conform with Medicare and Medicaid regulations. While engaging in this scheme, the officers and directors of the company not only exposed Omnicare to significant liability, but represented to the investing public that Omnicare was operating in compliance with all applicable laws and regulations. Further, the officers and directors caused Omnicare to report net sales and accounts receivable that were artificially inflated as they included the proceeds of the Medicare/Medicaid fraud. As a result of these activities, Omnicare has increasingly become the focus of costly public and legal scrutiny, including paying tens of millions of dollars to settle allegations of Medicare and Medicaid fraud, paying nearly $100 million to settle allegations of kickbacks involving continued Medicare and Medicaid fraud, and being named as a defendant in a whistleblower lawsuit and securities class action.
Robbins Umeda LLP highlights that Omnicare shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains.