The proposed deal would replace the $948.8 million False Claims Act judgment with at least $440 million of consideration and end the related appeals. CVS would pay DOJ $130 million within 14 days after effectiveness; Omnicare’s estates would distribute at least $310 million, with CVS backstopping any unpaid balance by March 31, 2028. DOJ’s $952.7 million claim would remain allowed but receive no distributions until all other allowed general unsecured claims are paid in full, according to the global settlement motion.

In exchange, DOJ would release the judgment-related claims, Omnicare and CVS would dismiss their appeals, and the estates would release potential claims against CVS—including claims investigated concerning a $660 million 2023 distribution. The settlement is conditioned on court approval by August 15 and closing the previously approved GenieRx sale. A JD Supra report frames the agreement as resolving the nearly decade-long False Claims Act dispute. Approval would remove the case’s dominant litigation overhang and establish the economics for a consensual plan, with the debtors projecting significant and likely full recoveries for other general unsecured creditors.