Three Chapter 11 Filings: CVS's Omnicare Settles a $949 Million Fraud Judgment, LIV Golf Runs Out of Saudi Cash, and a 36-Year-Old California Chain Shuts Most of Its Stores

Title: Three Chapter 11 Filings: CVS's Omnicare Settles a $949 Million Fraud Judgment, LIV Golf Runs Out of Saudi Cash, and a 36-Year-Old California Chain Shuts Most of Its Stores

CVS's Omnicare: A Fraud Judgment Gets Settled for Less Than Half

Omnicare, the CVS Health subsidiary that supplies drugs to nursing homes and assisted-living facilities, got court approval this week on a wind-down bankruptcy plan. Judge Stacey G. C. Jernigan of the U.S. Bankruptcy Court for the Northern District of Texas signed off Thursday, noting the plan received what Seeking Alpha described as "overwhelming acceptance" from general unsecured creditors. The plan is scheduled to take effect in October.

Some coverage of this story, including pieces from Yahoo Finance, the Miami Herald, and The Olympian, ran headlines declaring the liquidation "completed." It isn't complete yet. Court approval happened this week. The plan doesn't take effect until October, and the underlying $250 million sale of Omnicare's operations to GenieRx Holdings, a partnership of Milrose Capital and Integro Asset Management, is also expected to close in October, according to Omnicare's attorney Martha Wyrick of Haynes and Boone LLP, cited by Bloomberg News via TradingView.

Omnicare has been owned by CVS since 2015. In April 2026, U.S. District Judge Colleen McMahon in Manhattan hit Omnicare with a $542 million penalty and $406.8 million in damages, tripling a jury's $135.6 million award, over allegations it dispensed drugs to elderly and disabled patients without valid prescriptions and submitted 3,342,032 false claims to federal health programs between 2010 and 2018, according to Reuters. That's a total judgment of nearly $949 million. U.S. Attorney for the Southern District of New York Jay Clayton's office pursued the case, which originated as a whistleblower lawsuit.

Omnicare and 109 affiliated debtors filed Chapter 11 on Sept. 22, 2025, in Texas, according to case records maintained by Stretto. It got $110 million in debtor-in-possession financing to keep operating during the restructuring, CVS said at the time.

In July, CVS and Omnicare agreed to settle the federal claims for $440 million, not the full $949 million: $130 million paid upfront, with CVS on the hook for the remaining $310 million if Omnicare doesn't pay it by the end of March 2028, according to Bloomberg Law. An analysis by Arnold & Porter noted the settlement did not include an admission of liability or wrongdoing by CVS or Omnicare. A $440 million check to make a case go away is not the same as an admission the fraud allegations were fully true.

Nearly a million false claims over eight years, a $949 million jury-and-judge verdict, and a business now being sold off in bankruptcy court. Omnicare's closed-door pharmacies serve roughly 800,000 patients nationwide, according to a survey cited by Skilled Nursing News, which puts real stakes on a clean handoff to GenieRx.

CVS's broader retail business isn't in great shape either. Josh Cummings, a portfolio manager at Janus Henderson Investors, told the Financial Times "the whole drugstore four-wall economic model is collapsing on itself." Rite Aid has closed every store it had. CVS and Walgreens have shut thousands of locations combined, squeezed by thin pharmacy reimbursement rates and competition from Amazon's prescription delivery service.

LIV Golf: The Saudi Money Stopped

LIV Golf filed for Chapter 11 protection this week in a New Jersey court, listing more than $500 million in debt, according to Breitbart. The filing followed Saudi Arabia's Public Investment Fund abruptly cutting off its financing earlier this year. LIV's last event was last month in Indiana; its Louisiana and Michigan events were canceled after PIF pulled out.

LIV CEO Scott O'Neil said in a statement that the bankruptcy process gives the league "the structure and time to pursue a landmark transaction and begin the next chapter." The plan calls for BC Partners, the credit arm of the UK firm, to become the primary funding source, with PIF providing $49.6 million in debtor-in-possession financing subject to court approval. O'Neil has floated a "LIV Golf 2.0" with players as majority owners, an expanded 75-player field, and a 54-hole cut for the first time.

Jon Rahm, Bryson DeChambeau, Dustin Johnson, and Cameron Smith are the league's four largest listed creditors, with 14 of the top 30 creditors being players. Rahm's unsecured claim of nearly $7.5 million topped the list. Rahm told BBC Northern Ireland he still has a contract with "LIV 1.0" that he's "more than willing to fulfill," but said the future is unresolved: "time will tell." LIV listed $100 million to $500 million in assets against $500 million to $1 billion in liabilities.

A league that spent more than $5 billion luring players away from the PGA Tour with nine-figure signing bonuses is now negotiating in bankruptcy court over unpaid vendor bills, with the state of Louisiana itself listed as a creditor owed $1.22 million.

Marmalade Cafe: 36 Years, Down to Four Locations

Marmalade Cafe, the Southern California brunch chain that opened in Santa Monica in 1990 and once counted the Kardashians among its Calabasas regulars, filed Chapter 11 on Sept. 2. The Encino-based company cited "rent disputes and mounting supplier debts," according to Fox News, and owes more than $1 million to Gilmore Farmers Market, US Foods, Sysco Ventura Inc., and the California Department of Tax and Fee Administration, among others.

The filing listed $12.7 million in total assets against a $680,314 net loss, per the New York Post. The chain closed its Calabasas location after nearby construction wrecked parking, its Santa Monica location after losses tied to the Palisades Fire, and its Original Farmers Market outpost after it never recovered pre-pandemic traffic, according to the Los Angeles Times. Four locations remain open in El Segundo, Malibu, Sherman Oaks, and Westlake Village.

What's Actually Left Unresolved

The Omnicare sale to GenieRx and the bankruptcy plan's effective date both land in October, meaning the real test of a clean transition for roughly 800,000 long-term-care patients hasn't happened yet. CVS still faces the open question of whether it will ever have to cover that back-half $310 million payment if Omnicare's own funds fall short by March 2028.