Settlement of Indiana State District Council of Laborers and HOD Carriers Pension and Welfare Fund v. Omnicare, Inc., et al., Civil Action No. 2:06-cv-00026-WOB-CJS
The parties have reached a settlement of this action, pending in the United States District Court for the Eastern District of Kentucky, Northern Division at Covington. The settlement provides for the payment of $20,000,000 for the benefit of eligible Settlement Class Members. Lead Plaintiff Laborers District Council Construction Industry Pension Fund and named plaintiff Cement Masons Local 526 Combined Funds (collectively, “Plaintiffs”) alleged violations of §11 of the Securities Act of 1933 for making false and misleading statements and omitting material information Defendants were obligated to disclose in the Registration Statement and Prospectus for a December 12, 2005 offering. Plaintiffs’ allegations focused on the legality of Omnicare, Inc.’s (“Omnicare” or the “Company”) arrangements with pharmaceutical manufacturers and nursing homes and Omnicare’s pharmacy services to patients. Plaintiffs alleged that the Prospectus for the December 2005 offering falsely and misleadingly assured investors that Omnicare was in compliance with state and federal laws and that Omnicare delivered its pharmaceutical services in the best interests of its patients to maintain and improve patient care. Plaintiffs further alleged that Omnicare instructed its network of pharmacists to engage in drug switching initiatives to prescribe drugs for off-label purposes and to switch from one form of a drug to more profitable forms, not to improve patient care but to increase Omnicare’s revenues.
The Settlement Class consists of all Persons who purchased or otherwise acquired the common stock of Omnicare pursuant and/or traceable to its December 12, 2005 public offering. Excluded from the Settlement Class are Defendants, the officers and directors of the Company at the time of the offering, members of their immediate families and their legal representatives, heirs, successors, or assigns of any entity in which Defendants have or had a controlling interest. Also excluded from the Settlement Class are those Persons who timely and validly requested exclusion from the Settlement Class pursuant to the Notice of Pendency and Proposed Settlement of Class Action sent to Settlement Class Members pursuant to the Preliminary Approval Order.
The settlement was approved by the Court on June 27, 2019.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.