Omnicare's switching prescriptions within therapeutic classes.
participate 111 state medical assistance programs and routinely certified in its thousands of
Medicaid claim submissions for the Defendant Manufacturers' "preferred" medications that such
claims complied with all relevant laws and regulations, including the AKS. Such certifications
were knowingly false when made; Omnicare knew at the time that each such claim was
ineligible for reimbursement.
falsely celtify that it was acting in compliance with all applicable laws and regulations, including
the AKS, for each and every claim Omnicare submitted for a switched prescription by (1)
conspiring to defraud the government and (2) paying Omnicare kickbacks pursuant to the
conspiratorial Market Share Agreements.
ineligible claims for reimbursement to the government that they knew the government did not
owe for the purpose of defrauding the government into paying these improper claims.
Although "safe harbor" regulations exist to protect certain relatively innocuous
and even beneficial commercial arrangements, no such provision protects the payments made by
Defendant Manufacturers. One reason for these payments not being protected activity is that the
benefits of the unlawful payments were not passed on to the government (e.g. through reported
best prices), nor was the existence oftl10se payments disclosed.
THE KICKBACKS-FOR-SWITCHES SCHEME VIOLATED FEDERAL AND STATE FALSE CLAIMS ACTS
The government would not knowingly pay a claim for a medication purchase
resulting from an illegal kickback arrangement. Liability under the False Claims Act and state