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Johnson & Johnson To Pay $149 Million To Settle Omnicare Kickback Allegations
Date:11/4/2013

Philadelphia, Pennsylvania (PRWEB) November 04, 2013

The United States Department of Justice announced today that the New Jersey based pharmaceutical giant, Johnson & Johnson (“J&J”), has agreed to pay more than $2.2 billion in civil and criminal fines and penalties to settle allegations under the False Claims Act, $149 million of which is designated to a case brought by whistleblower Bernard Lisitza.

Mr. Lisitza, represented by Behn & Wyetzner, Chartered, and Kenney & McCafferty, P.C., filed his case, U.S. ex rel. Lisitza, et al. v. Johnson & Johnson, et al., in 2003 under the qui tam provisions of the False Claims Act (“FCA”) which enables private citizens to bring suit against government contractors who are alleged to be engaged in fraudulent activity. Lisitza, a pharmacist and former employee of Omnicare, Inc., the nation’s largest long-term care pharmacy, alleged that from 1999 through 2004, J&J participated in a “kickbacks for switches” scheme wherein the company induced Omnicare and its team of consultant pharmacists to purchase, promote, and switch patients from physician approved medications to J&J drugs including, most notably, the atypical antipsychotic drug Risperdal.    

Specifically, as detailed in the United States Complaint-in-Intervention, filed on January 15, 2010, in order to gain a competitive edge within therapeutic drug classes, J&J utilized “market share rebate” agreements, in addition to “grant” and sponsorship fees paid to Omnicare, to induce physicians to switch their nursing home patients to Risperdal from other atypical antipsychotics without regard
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