CVS Health’s Omnicare unit gets court approval for bankruptcy plan
A bankruptcy judge in Texas has approved a wind-down bankruptcy plan by Omnicare after the CVS Health CVS subsidiary sold its business operations for $250M and reached a $440M deal with the Justice Department to resolve an improper billing case.
Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas approved Omnicare’s Chapter 11 bankruptcy, noting that it received “overwhelming acceptance” from general unsecured creditors.
The bankruptcy plan, which provides full payments to all creditors and is scheduled to take effect in October, was approved by Jernigan during a hearing on Thursday, Bloomberg News reported.
Omnicare, which provides long-term care pharmacy services, filed for bankruptcy in September 2025 after a federal judge ordered it to pay $949M as part of a whistleblower lawsuit that found it liable for fraudulently billing the federal health agencies, including Medicare.
In July, the company and its parent, CVS, agreed to pay $440M to the Justice Department to resolve the lawsuit.
In May, Judge Jernigan approved Omnicare to be sold to GenieRx Holdings, a partnership betw...