A federal judge in Texas signed off on the Chapter 11 bankruptcy plan for Omnicare, CVS Health’s long-term care pharmacy, Sept. 17.
Omnicare filed for Chapter 11 protection in 2025 in the wake of a false claims case that neared a $950 million judgment.
Under the plan, the settlement between CVS and the Justice Department concerning Omnicare, which got court approval in August, will progress. The settlement has a $440 million floor, made up of $130 million due within two weeks of the settlement’s effective date and another $310 million due by March 2028.
Another pillar of the Chapter 11 plan: The court approved the subsidiary’s sale to GenieRx, a partnership between a private investment firm and a healthcare investment and management firm, for $250 million in May. That sale was expected to close later in 2026.
In 2022, CVS had also weighed strategic alternatives for Omnicare.
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