According to a complaint filed August 24, 2011, the defendants violated federal securities laws when the Company and certain of its executive officers concealed material information and made false and misleading statements relating to the Company’s business and financial condition.
Throughout the Class Period, the Company – unbeknownst to the investing public – was engaged in a widespread 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 Defendants were violating the law and exposing the Company to significant liability, they repeatedly – and falsely – represented that the Company was operating in compliance with all applicable laws and regulations. Further, the Company’s reported net sales and accounts receivable throughout the Class Period were artificially inflated as they included the proceeds of the Medicare/Medicaid fraud. When the truth about Omnicare was revealed, over $300 million in market capitalization was wiped out, causing Plaintiff and the Company’s other investors substantial damages.
On December 14, 2011, Magistrate Judge Candace J. Smith signed the Order granting the request to consolidate two related actions, Case No. 11-CV-173 and Case No. 11-CV-315. The issue of appointment of co-lead plaintiff and choice of lead counsel is taken under advisement.
On March 12, 2012, Magistrate Judge Candace J. Smith signed the Order appointing lead plaintiff and lead counsel.
On May 11, 2012, lead plaintiff filed an amended and consolidated complaint.
On March 27, 2013, the Court issued an Order granting Defendants' Motion to Dismiss with prejudice. On April 26, Plaintiffs filed Notice of their appeal of the above Order.
On October 10, 2014, the Court of Appeals issued an Opinion affirming the judgment of the District Court.