The role of CPT invariance and consequences for bipartite entanglement of neutral (K) mesons are discussed. A relaxation of CPT leads to a modification of the entanglement which is known as the omega effect. The relaxation of assumptions required to prove the CPT theorem are examined within the context of models of space-time foam. It is shown that the evasion of the EPR type entanglement implied by CPT (which is connected with spin statistics) is rather elusive. Relaxation of locality (through non-commutative geometry) or the introduction of an environment do not by themselves lead to a destruction of the entanglement. One model of the environment, which is based on non-critical strings and D-particle capture and recoil, leads to a specific momentum dependent stochastic contribution to the space-time metric and consequent change in the neutral meson bipartite entanglement. Although the class of models producing the omega effect is non-empty, the lack of an omega effect is demonstrated for a wide class of models based on thermal like baths which are often considered as generic models appropriate for the study of space-time foam.