Omnicare, LLC has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas. The CVS Health subsidiary’s filing comes amid ongoing litigation in the U.S. District Court for the Southern District of New York. Omnicare plans to continue pharmacy operations during the court-supervised process.
Omnicare Files for Chapter 11 Bankruptcy Protection
According to PRNewswire, Omnicare applied for Chapter 11 bankruptcy protection on Monday, September 22. The pharmacy company intends to use the court process to address the ongoing litigation. The company is considering a possible restructuring or sale as part of the process.
Omnicare provides pharmacy services to long-term care facilities across the country. The CVS subsidiary serves older adults in skilled nursing facilities along with assisted and independent living communities.
Haynes and Boone and Jenner & Block LLP are the legal representatives of the CVS subsidiary in the U.S. Bankruptcy Court for the Northern District of Texas.
PacerMonitor findings reveal that Omnicare, LLC made the voluntary petition, and the company’s Chapter 11 Plan and Disclosure Statement are due by January 20, 2026, in case ‘8:25-bk-80538.’
Omnicare President Cites District Court Penalty and Other Challenges
Commenting on the bankruptcy, David Azzolina, President of Omnicare, said, “Omnicare has been engaged in a civil lawsuit alleging technical violations of pharmacy law based on practices the government knew about and approved. There were no allegations of harm to any Omnicare patients, nor did the government allege that any patient got anything other than the medicine they needed when they needed it. The District Court nevertheless imposed an extreme and, we believe, unconstitutional penalty.”
Azzolina said the ruling, along with other challenges, prompted the bankruptcy filing to ensure continued pharmacy services.
He further thanked the Omnicare facility members and senior community partners for their support.
Operations to Continue With Debtor-in-Possession Financing
The CVS subsidiary aims to continue meeting the pharmacy needs of its customers and those in long-term care facilities. To support operations, the company secured $110 million in debtor-in-possession financing.
Once the court approves, Omnicare expects to utilize the secured amount, along with cash generated through operations. Maintaining adequate liquidity will help the company meet its financial obligations.
Omnicare is also seeking court approval for routine motions to keep operations running during the bankruptcy. An approval would mean continued payment of the pharmacy brand’s employee wages and benefits. After the filing date, it could also pay vendors and suppliers under normal terms for goods and services.
About CVS Health
The healthcare giant had around 9,000 retail pharmacy locations and over 1,000 walk-in and primary care medical clinics, as of June 30, 2025. CVS Health further had a pharmacy benefits manager with nearly 87 million plan members. Its senior pharmacy care business serves 800,000+ patients each year.
The health solutions brand caters to the medical needs of 37 million plus people via voluntary, traditional, and consumer-directed health insurance products and services. This covers the popular Medicare Advantage offerings and a separate Medicare Part D prescription drug plan.
CVS Health serves through an integrated model offering tech-driven services to connect people to better health. The model helps enhance quality care access and lower overall costs.
Omnicare, LLC aims to stabilize its operations and evaluate restructuring options with legal guidance and debtor-in-possession financing during the latest bankruptcy process.
