Friday, January 22, 2010

U.S. Files Suit Against J&J for Paying Kickbacks Based on Whistleblower Suits

Drug manufacturer Johnson & Johnson, of New Brunswick, N.J., and two of its subsidiaries are the targets of a complaint filed by the U.S. government under the False Claims Act.

The government alleges that J&J paid millions of dollars in kickbacks to Omnicare Inc., to increase the purchase and recommendation of J&J drugs to nursing home pharmacies. Omnicare is the nation’s largest pharmacy that specializes in supplying nursing home patients with necessary drugs.

According to the complaint, J&J allegedly paid kickbacks to Omnicare by various means, including in the form of payments purportedly for “data,” “grants,” and “educational funding.”

In November 2009, Omnicare agreed to pay $98 million to settle a False Claims Act lawsuit with the U.S. and several states, for taking kickbacks from J&J, among other allegations.

This case is based on two combined whistleblower lawsuits from the District of Massachusetts.

Click here to read the full article, “U.S. Files Suit Against Johnson & Johnson for Paying Kickbacks to Nation’s Largest Nursing Home Pharmacy"

Printer Friendly Page