Omnicare Wins Approval of $250M Sale to GenieRx

Omnicare, LLC, a subsidiary of CVS Health Corporation, is negotiating a chapter 11 plan after the bankruptcy court approved the sale of substantially all assets to GenieRx Holdings LLC for a reported $250 million on May 13, 2026. GenieRx had been designated the stalking horse bidder and became the successful bidder after Omnicare canceled its scheduled auction for lack of a competing qualified bid. The same day, the court extended the debtors' exclusive periods to file and solicit a chapter 11 plan, keeping plan negotiations with the U.S. Government, CVS, and the creditors' committee on a track separate from the now court-approved sale. The judgment that triggered the case stemmed from a 2015 whistleblower lawsuit alleging that Omnicare dispensed medications without valid prescriptions or refills from 2010 to 2018, then billed Medicare, Medicaid, and TRICARE for over 3.3 million false claims.

Omnicare—a long-term care pharmacy provider and a subsidiary of CVS Health Corporation since a $12.7 billion acquisition in 2015—filed chapter 11 petitions on September 22, 2025 in the U.S. Bankruptcy Court for the Northern District of Texas (Dallas Division), case number 25-80486, following a $948.8 million False Claims Act judgment that the company called extreme and unconstitutional. The bankruptcy encompasses 111 debtor entities serving more than 800,000 patients annually across 4,000+ skilled nursing facilities, assisted living communities, and other long-term care settings in 46 states. Omnicare secured $110 million in debtor-in-possession financing from JMB Capital Partners to fund a 363 sale process that resolved without an auction.

Debtor(s)	Omnicare, LLC, et al. (111 debtors; jointly administered)
Court	U.S. Bankruptcy Court, Northern District of Texas (Dallas Division)
Case Number	25-80486
Judge	Hon. Stacey G. C. Jernigan
Petition Date	September 22, 2025
DIP Facility	$110 million from JMB Capital Partners; $25 million interim draw; amended maturity August 31, 2026
Sale Order	Entered May 13, 2026; buyer GenieRx Holdings LLC; reported $250 million
Exclusive Filing Period	Extended to July 20, 2026; chapter 11 plan and disclosure statement filed July 10, 2026
DOJ/CVS/UCC Settlement	$440 million minimum to DOJ; approval hearing set for August 12, 2026
Table: Case Snapshot

From $12.7 Billion CVS Acquisition to Bankruptcy

The CVS acquisition. On May 21, 2015, CVS Health and Omnicare announced a definitive agreement under which CVS would acquire Omnicare for $98.00 per share in cash. CVS completed the acquisition on August 18, 2015 for approximately $12.9 billion total enterprise value—$10.4 billion in cash plus assumption of $2.3 billion in debt.

Serial impairments. In August 2018, CVS announced a $3.9 billion goodwill impairment charge—representing 59% of Omnicare's recorded value. In February 2019, CVS recorded an additional $2.2 billion impairment due to "further deterioration expected in the business." In 2021, a $431 million impairment charge eliminated remaining goodwill. By the third quarter of 2022, CVS reported a $2.5 billion loss related to Omnicare and declared the long-term care pharmacy business "no longer a strategic asset." Cumulative impairments exceeded $6 billion—more than half the original purchase price—before the bankruptcy filing.

Failed sale attempt. CVS's November 2022 announcement that it planned to sell Omnicare followed a determination that the carrying value of the LTC business exceeded its fair value. CVS halted those sale efforts in 2023 without completing a transaction, before the False Claims Act judgment in 2025.

The $948.8 Million False Claims Act Judgment

No prepetition funded debt. Unlike most chapter 11 debtors, Omnicare carried no material secured or unsecured funded debt as of the petition date—no outstanding bonds or credit facilities—so the FCA judgment functioned as the case's dominant liability. The debtors' other prepetition obligations, disclosed in the First Day Declaration, included approximately $28 million owed to CVS for reimbursements under shared vendor contracts, roughly $5 million in third-party trade debt, and more than $19 million in annual real estate obligations across more than 100 pharmacy and business-location leases.

Prior settlements and compliance history. Omnicare's compliance record included earlier False Claims Act settlements: nearly $50 million in 2012 over kickback allegations, $124 million in 2014 for improper financial incentives to nursing homes, $28.125 million in 2016 to resolve allegations that it solicited kickbacks from Abbott Laboratories in exchange for promoting Depakote for nursing home patients (payments allegedly disguised as "grants" and "educational funding"), and $8 million in 2017 to settle FCA allegations with the U.S. Attorney for the District of New Jersey, DOJ, and 28 states over billing for generic drugs different from those dispensed and dispensing drugs with patient-specific labels displaying incorrect manufacturer or NDC information.

The Bassan whistleblower lawsuit and the $948.8 million judgment. In 2015, the same year CVS completed its acquisition, former Omnicare pharmacist Uri Bassan filed a qui tam lawsuit under the False Claims Act's whistleblower provisions. The lawsuit alleged that Omnicare dispensed prescription medications without valid prescriptions or refills from 2010 to 2018, with pharmacies assigning new prescription numbers without required paperwork and pharmacist approvals after original prescriptions expired or ran out of refills. The company billed Medicare, Medicaid, and TRICARE for these dispensed medications. In 2019, the U.S. Government intervened in the lawsuit, and as the qui tam relator Bassan is entitled to 15–25% of any recovery.

After a four-week trial in the Southern District of New York, a federal jury in April 2025 found Omnicare liable for 3,341,032 false claims over eight years, described by the U.S. Attorney for the Southern District of New York as one of the largest damages awards by a jury in a False Claims Act case. Judge Colleen McMahon issued her ruling on July 7, 2025, and on August 18, 2025 the district court entered a total judgment of $948.8 million against Omnicare: $135.6 million in jury-awarded damages trebled to $406.8 million under the FCA, plus $542 million in statutory penalties. CVS was found responsible for approximately 30% of the false claims—1,016,039 claims submitted after the August 2015 acquisition—and was held jointly and severally liable for $164.8 million of the judgment. The court found that "Omnicare was aware for years of the problems posed by its dispensing practices" yet failed to implement corrective measures.

Constitutional challenge and post-petition appeal. Judge McMahon acknowledged that strict application of the FCA's $5,000-per-violation penalty would have yielded approximately $26.9 billion. The court rejected Omnicare's argument that penalties should be limited to a 1:1 ratio with damages, finding that "a 4:1 ratio was constitutionally permissible" under the Eighth Amendment's Excessive Fines Clause, and clarified that "the Eighth Amendment's Excessive Fines Clause, rather than due process concerns, governs the constitutionality of FCA penalties." Omnicare's President David Azzolina characterized the penalty as "extreme and, we believe, unconstitutional," noting that there were "no allegations of harm to any Omnicare patients." In August 2025, a federal judge denied Omnicare's motion to overturn the judgment.

The debtors and the United States stipulated in November 2025 to modify the automatic stay so the FCA appeal could proceed before the U.S. Court of Appeals for the Second Circuit, while preserving both sides' rights to dispute whether the appeal falls within the Bankruptcy Code's governmental-enforcement exception to the stay. The parties later stipulated to extend the government's deadline to file a complaint contesting dischargeability of the FCA debt under 11 U.S.C. § 1141(d)(6) to May 25, 2026; the government asserts the FCA debt is automatically nondischargeable, a position the debtors do not concede.

Long-Term Care Pharmacy Duopoly and Customer Distress

Market structure and consolidation. The long-term care pharmacy market totals approximately $18–$20 billion, with national long-term care pharmacies collectively controlling approximately 90% of market share. A 2023 study of 75 skilled nursing facilities in Rhode Island found that 68 facilities (91%) were served by either Omnicare (43%) or PharMerica (48%), with only 7 facilities (9%) served by other LTC pharmacies. The U.S. institutional pharmacies industry totals $24.8 billion in 2025, with Omnicare and PharMerica identified as the largest companies in the industry.

Reimbursement pressures and industry headwinds. The First Day Declaration identifies factors that compounded Omnicare's financial distress beyond the False Claims Act judgment: lasting COVID-19 impacts on skilled nursing facility occupancy, inflation across the pharmacy supply chain, a tighter labor market, and evolving Medicare policies and declining reimbursement rates from payors. The shift from traditional Medicare to Medicare Advantage, combined with inadequate Medicaid funding, has resulted in revenue not keeping pace with higher costs for skilled nursing operators. CMS finalized a 4.2% increase in Medicare payments to skilled nursing facilities for fiscal year 2025, translating to approximately $1.4 billion in additional Medicare Part A payments.

Customer distress: the Genesis Healthcare bankruptcy. Genesis Healthcare filed chapter 11 on July 9, 2025 with $2.3 billion in debt, affecting over 15,000 residents and 27,000 employees across 200 skilled nursing facilities and senior living centers in 18 states. Genesis faced more than 200 malpractice and wrongful death lawsuits and was spending $8 million monthly to litigate and settle cases before bankruptcy. The First Day Declaration identifies customer bankruptcies as contributors to Omnicare's bad debt and revenue erosion.

DIP Financing and the JMB Capital Facility

DIP financing structure. The debtors secured $110 million in aggregate DIP financing from JMB Capital Partners to fund operations and the sale process. The financing was structured in two tranches: $25 million available upon the September 24, 2025 DIP Interim Order and $85 million upon the November 3, 2025 DIP Final Order.

DIP Term	Details
Total Facility Size	$110 million
Interim Amount	$25 million
Final Amount	$85 million
Type	Non-amortizing, priming super-priority senior secured
Interest Rate	10% per annum, payable monthly in arrears
Default Rate	Additional 2% per annum
Commitment Fee	2.0% of commitments ($2.2 million)
Exit Fee	6% of interim and delayed-draw commitments
Maturity	August 31, 2026; conditional September 30, 2026 extension if regulatory approvals delay an acceptable sale

The February 25, 2026 DIP amendment order extended the maturity from June 30, 2026 to August 31, 2026, with a conditional September 30, 2026 extension if regulatory approvals delay an acceptable sale. The same amendment extended the stalking horse milestone from January 31, 2026 to March 31, 2026 and increased the exit fee from 5% to 6% of the interim and delayed-draw commitments. The amendment cited the complexity of the sale process and the need for prospective buyers to complete due diligence; by late January 2026, more than 60 parties had executed non-disclosure agreements, with several engaged in second-round diligence.

Operating performance. The debtors' January 2026 monthly operating report showed $722.1 million in net revenue against $324.6 million in operating expenses, an operating loss of $43.8 million, and $65.3 million of cash on hand, figures the debtors attributed to ongoing restructuring costs during the chapter 11 process.

GenieRx 363 Sale and Court-Approved Asset Purchase

Bidding procedures, stalking horse path, and auction cancellation. Judge Jernigan entered the Bidding Procedures Order on December 3, 2025, authorizing a sale of substantially all assets and permitting the debtors to designate one or more stalking horse bidders. On April 14, 2026, the court entered an order modifying the bid procedures, replacing the original procedures in their entirety and authorizing bid protections capped at a 3% break-up fee and $1.5 million in expense reimbursement, with no protections available to the DIP lender if it served as stalking horse solely through a credit bid. Omnicare then entered a stalking horse asset purchase agreement with GenieRx Holdings, reported by Bloomberg Law as a partnership between Milrose Capital and Integro Asset Management.

On May 1, 2026, Omnicare filed a notice canceling the auction that had been scheduled for May 5, 2026. The debtors determined, in consultation with the consultation parties, that no auction would be held because no competing qualified bid was received; the GenieRx stalking horse bid was designated the successful bid in lieu of an auction. The debtors proceeded directly to a sale hearing on the GenieRx agreement.

The May 13, 2026 sale order and absence of objections. After a sale hearing held May 13, 2026, the court entered the order approving the GenieRx asset purchase agreement and authorizing the sale of substantially all of the debtors' assets free and clear of liens, claims, interests, and encumbrances under section 363(f). The court found that entering into the agreement and consummating the sale was a "valid and reasonable exercise of the Debtors' business judgment," that GenieRx is a "good-faith purchaser within the meaning of section 363(m)" entitled to the protections afforded thereunder, and that the marketing process "afforded a full, fair, and reasonable opportunity for any Potential Bidder to make a higher or otherwise better offer." The order also authorizes the assumption and assignment of executory contracts and unexpired leases to GenieRx under section 365, with cure costs payable upon closing. Reuters and trade press reported the transaction as a $250 million sale; the sale order itself does not state a purchase-price figure, characterizing the consideration only as "fair and reasonable" and constituting "reasonably equivalent value."

The debtors' Certificate of Counsel Regarding Proposed Sale Order, filed May 13, 2026, states that no party in interest filed a formal objection to approval of the sale. The debtors received informal "Sale Order Responses" and requested edits from various interested parties and resolved all of them through revisions to the proposed order, submitting a revised proposed order with a redline comparison. CVS Health said the transaction is expected to close later this year subject to regulatory approvals; the sale order confirms closing remains subject to the regulatory approvals and other conditions set forth in the asset purchase agreement.

Privacy expert declaration. Because the sale transfers patient data, the debtors filed the Declaration of Marcy Wilder, a privacy expert and attorney at Hogan Lovells LLP, in support of the sale motion. Wilder examined Omnicare's Website, MyOmniview, Omniview, and Workforce privacy policies and its HIPAA Notice of Privacy Practices, and concluded that the transfer of personally identifiable information and protected health information to GenieRx is consistent with the company's privacy policies in effect as of the petition date—each of which permitted transfer of information in a bankruptcy or corporate transaction. She concluded that the sale does not necessitate appointment of a consumer privacy ombudsman. Omnicare retained Hogan Lovells as special privacy counsel for the sale process.

Lease rejections. Alongside the sale process, the debtors have been rejecting underperforming pharmacy leases, with rejection orders entered January 23, 2026 and March 3, 2026. The court extended the deadline to assume or reject the debtors' more than 100 remaining nonresidential real property leases to April 20, 2026, aligning the lease-disposition timeline with the sale process.

Plan Structure, Creditor Recoveries, and DOJ Settlement

Proposed plan structure and exclusivity extension. The debtors' joint chapter 11 plan of reorganization and liquidation, filed July 10, 2026, contemplates that GenieRx will own the continuing reorganized debtors while the remaining debtor entities liquidate and dissolve under a plan administrator after transferring their assets to GenieRx under the asset purchase agreement. The plan proposes the following class treatment; none of these terms are confirmed.

Class	Claim Type	Status	Projected Recovery
1–2	Other secured and priority claims	Unimpaired	100%
3	General unsecured claims	Impaired, voting	100%
4	DOJ claim	Impaired, voting	46.2%
5	CVS prepetition claims	Impaired, voting	0%
6	Surviving equity	Unimpaired	100%
7	Other equity interests	Deemed rejecting	0%

The debtors' disclosure statement and solicitation motion proposes an August 7, 2026 voting record date and a September 10, 2026 voting deadline, alongside the August 12, 2026 disclosure statement hearing and September 17, 2026 confirmation hearing; the motion remains pending.

On April 16, 2026, the debtors moved to extend the exclusive periods to file and solicit a chapter 11 plan by 90 days, arguing that allowing competing plans during the sale process would be premature and detrimental. The court granted the motion on May 13, 2026, extending the exclusive filing period to July 20, 2026 and the exclusive solicitation period to September 17, 2026; no objection was filed. The debtors said they were negotiating a consensual plan with key stakeholders—the United States regarding the FCA judgment and appeal, parent company CVS Health, and the creditors' committee—and needed time to evaluate the general unsecured claims pool, resolve personal injury claims, and assess the effect of contract and lease dispositions on claims. A separate order entered the same day extended the debtors' deadline to remove civil actions to August 19, 2026. The debtors filed their joint chapter 11 plan and disclosure statement on July 10, 2026, ahead of the exclusive filing deadline. The debtors' motion to approve the disclosure statement proposes a Disclosure Statement Hearing on or around August 12, 2026 and a Confirmation Hearing on or around September 17, 2026.

The DOJ, CVS, and creditors' committee settlement. On July 1, 2026, the debtors filed a motion under Bankruptcy Rule 9019 to approve two interrelated settlements resolving the $948.8 million judgment and related claims among the debtors, the U.S. Department of Justice, CVS Health, and the official committee of unsecured creditors. The proposed $440 million resolution was independently reported as part of Omnicare's continuing chapter 11 case and court-approved sale process. Under the DOJ Agreement, the government will accept a minimum of $440 million in satisfaction of its claims: an initial $130 million payment from CVS within 14 days after the agreement takes effect, plus no less than $310 million in distributions from the debtors' estates, with CVS obligated to pay any shortfall of the $310 million by March 31, 2028 if the debtors have not paid it by March 15, 2028. The DOJ's claim, filed at $952,717,824.19, will be allowed in full as a general unsecured claim, with the government agreeing to defer its distributions until all other allowed general unsecured claims are paid or reserved for. In the related CVS Estate Settlement, the debtors' estates will release potential claims against CVS—including a possible constructive fraudulent transfer claim tied to a 2023 Omnicare distribution to CVS of $660 million—in exchange for CVS's performance under the DOJ Agreement; CVS's own prepetition claims against the debtors will not receive distributions unless the DOJ claim is paid in full. Both agreements are contingent on each other, on closing of the GenieRx sale, and on final court approval by August 15, 2026; the debtors estimate the settlements make it very likely other general unsecured creditors will be paid in full. The bankruptcy court scheduled a hearing on the settlement motion for August 12, 2026. Because the government intervened in the underlying qui tam lawsuit, Uri Bassan is entitled to 15–25% of any recovery under the False Claims Act's relator provisions. CVS was separately found jointly and severally liable for $164.8 million of the judgment; the parent company remains outside the bankruptcy and solvent.

First-day relief and bar date. The court entered a Joint Administration Order on September 24, 2025, consolidating the 111 debtor entities for procedural purposes while preserving their separate legal identities, with first-day relief authorizing continuation of existing cash management systems, payment of prepetition employee wages and benefits, and maintenance of critical vendor relationships. Bar date procedures followed through a December 3, 2025 Bar Date Order, entered after resolving an objection filed on December 1, 2025, setting a February 2, 2026 general bar date and a March 23, 2026 governmental bar date. Stay relief motions have been filed and resolved through agreed stipulations with facility operators.

Professional retentions, fees, and employee retention. The debtors retained Jenner & Block LLP as lead bankruptcy counsel, with Haynes and Boone LLP as co-counsel, Williams & Connolly LLP as special litigation counsel for the FCA appeal, Dechert LLP as special antitrust counsel, Houlihan Lokey Capital as investment banker, Alvarez & Marsal North America (providing Matthew Frank and Paul Rundell as co-chief restructuring officers) and KPMG LLP as financial advisors, and Stretto, Inc. as claims and noticing agent. The Official Committee of Unsecured Creditors retained Herbert Smith Freehills Kramer and Vartabedian Katz Hester & Haynes LLP as co-counsel, with Dundon Advisers and Huron Consulting Services as financial advisors. First interim fee applications covering September 22 through December 31, 2025 request approximately $17.1 million across these advisors: Alvarez & Marsal billed $7.45 million; Jenner & Block billed $4.08 million; Houlihan Lokey billed $2.65 million; Haynes and Boone billed $1.47 million; Williams & Connolly billed $928,953; KPMG and Dechert billed $552,585 and $16,648, respectively; and, on the committee side, Herbert Smith Freehills Kramer billed $1.05 million, while Dundon Advisers, Huron Consulting, and Vartabedian Hester & Haynes together billed approximately $866,800.

The court approved a Key Employee Retention Plan on November 13, 2025 covering 389 non-insider employees in four tiers: 16 senior operating-team members receiving 20% of base salary (about $610,000 total), six pharmacy leaders receiving $20,000 one-time payments ($120,000 total), 208 pharmacy technicians receiving $5,000 one-time payments ($1.04 million total), and 159 drivers receiving $2,000 one-time payments ($320,000 total)—a combined KERP cost of approximately $2.09 million, plus a $200,000 discretionary retention pool, with payments conditioned on continued employment through a sale, plan confirmation, or termination event. On July 14, 2026, the court entered a separate order authorizing a supplemental employee incentive and retention plan modifying the original KERP terms.

Key Timeline

Date	Event
May 21, 2015	CVS announces Omnicare acquisition for $12.7B
August 18, 2015	CVS completes Omnicare acquisition
2015	Uri Bassan files whistleblower False Claims Act lawsuit
August 2018	CVS announces $3.9B impairment charge (59% of Omnicare value)
February 2019	CVS records $2.2B additional impairment charge
2019	U.S. Government intervenes in FCA lawsuit
2021	CVS records $431M impairment eliminating remaining goodwill
Q3 2022	CVS reports $2.5B loss on Omnicare; declares "no longer a strategic asset"
November 2022	CVS announces plan to sell Omnicare
2023	CVS abandons Omnicare sale efforts
April 2025	Jury finds Omnicare liable for 3,341,032 false claims
July 7, 2025	Judge McMahon issues ruling on FCA damages and penalties
July 9, 2025	Genesis Healthcare files chapter 11 (major Omnicare customer)
August 18, 2025	District court enters $948.8 million FCA judgment
August 2025	Federal judge denies motion to overturn judgment
September 22, 2025	Chapter 11 petitions filed (111 Debtors)
September 24, 2025	Joint administration order; DIP interim order ($25M)
November 3, 2025	DIP final order entered ($110M total)
November 13, 2025	KERP approved ($2.09M covering 389 non-insider employees)
December 3, 2025	Bidding procedures order entered; bar date order entered
December 22, 2025	U.S. Government stipulation motion filed
February 25, 2026	DIP amendment order entered, extending sale milestones
April 1, 2026	Omnicare announces GenieRx stalking horse asset purchase agreement
April 14, 2026	Court enters order modifying the bid procedures
April 16, 2026	Debtors move to extend plan exclusivity periods
May 1, 2026	Omnicare cancels auction; GenieRx designated successful bidder
May 4, 2026	Declaration of privacy expert Marcy Wilder filed
May 13, 2026	Sale hearing held; court approves GenieRx asset purchase agreement
May 13, 2026	Court extends exclusive filing period to July 20, 2026
July 1, 2026	Debtors file 9019 motion for $440M settlement with DOJ, CVS, and UCC
July 10, 2026	Debtors file chapter 11 plan and disclosure statement
July 14, 2026	Court authorizes supplemental employee incentive and retention plan
August 7, 2026	Proposed voting record date for plan solicitation
August 12, 2026	Disclosure Statement Hearing and 9019 settlement hearing scheduled
September 10, 2026	Proposed voting deadline for plan solicitation
August 31, 2026	Amended DIP maturity date
September 17, 2026	Extended exclusive solicitation period; Confirmation Hearing scheduled

Frequently Asked Questions

Why did Omnicare file for bankruptcy?

Omnicare filed chapter 11 after a federal court in August 2025 imposed a $948.8 million judgment against the company for False Claims Act violations. The judgment stemmed from a 2015 whistleblower lawsuit alleging that Omnicare dispensed medications without valid prescriptions from 2010 to 2018 and billed Medicare, Medicaid, and TRICARE for over 3.3 million false claims. After courts denied Omnicare's attempts to overturn or reduce the judgment, the company filed for bankruptcy to address the liability while preserving the operating business.

Who is buying Omnicare and how much did the sale fetch?

The bankruptcy court approved the sale of substantially all of Omnicare's assets to GenieRx Holdings LLC on May 13, 2026. Bloomberg Law reported GenieRx as a partnership between Milrose Capital LLC and Integro Asset Management LLC and described the transaction as a $250 million sale. The sale order itself does not state a purchase price; it describes the consideration as "fair and reasonable." The transaction is expected to close later in 2026, subject to regulatory approvals.

What was the False Claims Act violation?

A jury found that Omnicare dispensed medications without valid prescriptions or refills from 2010 to 2018. The company allegedly assigned new prescription numbers without required paperwork and pharmacist approvals after original prescriptions expired or ran out of refills, then billed government healthcare programs for the dispensed drugs. The jury found 3,341,032 separate false claims over the eight-year period. There were no allegations of patient harm; the case centered on missing prescription and refill authorizations rather than the medications dispensed.

Will Omnicare's pharmacy services continue?

Yes. Omnicare committed to maintaining uninterrupted pharmacy services and continuing employee wages and benefits throughout the bankruptcy process. The company operated while pursuing the sale, and the GenieRx transaction is structured as a going-concern sale of substantially all assets, including pharmacy locations, customer contracts, and technology systems.

Is CVS Health also in bankruptcy?

No. CVS Health Corporation remains solvent and outside the bankruptcy. Omnicare filed as a separate subsidiary, while CVS was found jointly and severally liable for approximately $164.8 million of the judgment related to false claims submitted after the 2015 acquisition, and that exposure remains regardless of the Omnicare bankruptcy outcome.

What happens to the U.S. Government's $948.8 million claim?

The U.S. Government is the largest creditor in the bankruptcy case. On July 1, 2026, the debtors filed a motion to approve a settlement under which DOJ will accept a minimum of $440 million in satisfaction of its claims—$130 million paid by CVS within 14 days after the settlement takes effect, plus at least $310 million in distributions from the debtors' estates (backstopped by CVS if not paid by March 15, 2028). DOJ's claim will be allowed in full as a general unsecured claim, with distributions deferred until other general unsecured claims are paid or reserved for. The settlement requires court approval by August 15, 2026; a hearing is scheduled for August 12, 2026. The whistleblower who filed the original lawsuit, Uri Bassan, is entitled to 15-25% of any government recovery.

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