Wow, for years they tried to offload this and finally when the hammer hit file for bankruptcy. Would CVS be on the hook for the fine? Otherwise what does an acquisition mean?
11 replies (most recent on top)
Ehh these big corps have a tons of shell companies to shelter them from this kind of loss. I doubt CVS will pay anything, just let one of their shell companies go defunct. Big deal.
@j1 According to what I read, CVS Health is responsible for like $164.8 million of this judgment. Or a number close to that. And knowing CVS they will probably appeal.
Omnicare was purchased in2015 by CVS and with that they assumed all liabilities. So even though this suit occurred prior to the purchase, cvs owns it. Cvs Health was added to the suit. Likely an appeal is being filed.
Then definitely it will
Directly Impact cvs health overall business and leads to more layoff in October
All I see is an advance notice of what is to come (all business units).
@b1 According to what I read Omnicare declared $100 million in assets and 5-10 Billion in liabilities. If true then this judgement is like 9 times more than what they have in declared assets. CVS has a big problem here.
Which means they are protected from former employees suing them too.
Don't you have to declare all assets and then sell those assets if there is a judgement? Ahead of restructuring of course.
@a9 Not saying it's legal, but voluntarily filing for bankruptcy protection, right after a $949 million dollar judgement was levied against you? It's obvious this is a delay and stall tactic while they figure out their next move. CVS already said they're appealing this judgement. So just my personal opinion, but I don't think they have any intention of paying that judgement out.
@a4 How is this legal?
I think CVS is simply using this bankruptcy filing to avoid having to pay the 949 million.