Core Points - Omnicare has filed for Chapter 11 bankruptcy protection in Texas following a nearly $1 billion civil judgment related to fraudulent activities [1][4] - CVS Health, which acquired Omnicare for $12.7 billion in 2015, is considering selling off Omnicare's specialty pharmacy services operation [1][2] Financial Challenges - The bankruptcy filing is a response to a $949 million fraud penalty imposed by a New York judge after Omnicare was found liable for dispensing drugs without valid prescriptions [4][5] - Omnicare is reported to have filed over 3 million false claims to Medicare, Medicaid, and Tricare from 2010 to 2018 [5] Restructuring Plans - CVS stated that the bankruptcy process will help address financial challenges and evaluate restructuring options, including a potential sale strategy [2] - Omnicare's president described the penalty as "extreme" and indicated that the company is taking necessary steps to move forward [6] Business Operations - Omnicare specializes in providing pharmacy services for long-term and acute care facilities, including filling prescriptions and managing medications [8] - Despite the bankruptcy, Omnicare has assured that it will continue to operate normally and meet the pharmacy needs of its customers [9] Historical Context - CVS had previously considered selling Omnicare in 2022, writing off a $2.5 billion loss on the unit's assets, but later decided against the sale in late 2023 [9]