Navigation Links
U.S. Files Suit Against Johnson & Johnson For Paying Kickbacks to Nation's Largest Nursing Home Pharmacy
Date:1/15/2010

WASHINGTON, Jan. 15 /PRNewswire-USNewswire/ --The United States has filed a civil False Claims Act complaint against drug manufacturer Johnson & Johnson (J&J) of New Brunswick, N.J., and two of its subsidiaries, Ortho-McNeil-Janssen Pharmaceuticals Inc. and Johnson & Johnson Health Care Systems Inc., the Justice Department announced today.  The complaint alleges that these companies paid millions of dollars in kickbacks to Omnicare Inc., the nation's largest pharmacy that specializes in dispensing drugs to nursing home patients.  In November 2009, the United States, numerous states, and Omnicare entered into a $98 million settlement agreement that, among other things, resolved Omnicare's civil liability under the False Claims Act for taking kickbacks from J&J.

In its complaint against J&J, the United States alleges that the company paid kickbacks to Omnicare to induce the nursing home pharmacy company to purchase and recommend J&J drugs, including the anti-psychotic drug Risperdal, for use in nursing homes.  According to the complaint, J&J understood that Omnicare's pharmacists reviewed nursing home patients' charts at least monthly and made recommendations to physicians on what drugs should be prescribed for those patients.  The government further alleges that J&J knew that physicians accepted the Omnicare pharmacists' recommendations more than 80 percent of the time, and that J&J viewed such pharmacists as an "extension of [J&J's] sales force."

The United States alleges that, in order to induce Omnicare and its pharmacists to recommend J&J drugs, the company paid kickbacks to Omnicare in numerous ways.  First, the complaint alleges that J&J entered into agreements with Omnicare by which Omnicare was entitled to increasing levels of rebates from Johnson & Johnson so long as Omnicare implemented specific programs to increase the prescriptions of J&J drugs.  Second, the complaint alleges that J&J paid Omnicare millions of dollars for "data," much of which Omnicare never provided.  According to the complaint, the true purpose of these payments was to induce Omnicare to recommend J&J drugs.  Third, the complaint alleges that J&J made various other substantial kickback payments to Omnicare, calling the payments "grants" and "educational funding," even though their true purpose was to induce Omnicare to recommend J&J drugs.

"We will pursue those who break the law to take advantage of the elderly and the poor," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice.  "Kickbacks such as those alleged here distort the judgments of health care professionals and put profits ahead of sound medical treatment." 

The United States filed its complaint in two consolidated whistleblower lawsuits presently on file in the District of Massachusetts.

Assistant Attorney General West thanked the collaborative efforts of the Justice Department's Civil Division, the U.S. Attorney for the District of Massachusetts, the Office of Inspector General of the Department of Health and Human Services, the Food and Drug Administration Office of Criminal Investigations and the Federal Bureau of Investigation. 

SOURCE U.S. Department of Justice

RELATED LINKS
http://www.justice.gov

'/>"/>

SOURCE U.S. Department of Justice
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Codexis, Inc. Files Registration Statement for Proposed Initial Public Offering
2. Viral Genetics Files 2009 3rd Quarter Consolidated Financials and Information Statement at Pinksheets.com
3. Vion Pharmaceuticals Files for Chapter 11 Bankruptcy
4. Berger & Montague, P.C., Files Class Action Against Hemispherx Biopharma, Inc. Extending the End of the Class Period to December 1, 2009, When the Company Announced That the FDA Found No Evidence of Efficacy of Its Drug
5. Vermillion Files Amended Plan of Reorganization and Exchanges Debt
6. Watson Files FDA Application for Generic Rozerem(R)
7. Cardium Files FDA 510(k) Application for U.S. Marketing Clearance of ExcellagenXL(TM) Topical Gel and ExcellagenFX(TM) Flowable Collagen Protein-Based Matrix for Diabetic, Pressure and Venous Ulcers and Other Dermal Wounds
8. Cephalon Files Patent Infringement Lawsuit Against Teva Pharmaceuticals
9. Endologix Files Motion to Discontinue Court Proceedings Related to Alleged Patent Infringement
10. Vermillion Files Plan of Reorganization
11. Sinovac Files Shelf Registration Statement
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/9/2017)... Ore. , May 9, 2017  Semler ... that provides technology solutions to improve the clinical ... financial results for the first quarter ended March ... our products enable our customers to identify when ... to intervene before events like heart attacks or ...
(Date:5/6/2017)... Texas , May 5, 2017   Provista , ... with more than 200,000 customers, today announced Jim Cunniff ... a wealth of executive and business experience to Provista, including ... compounding pharmacy in California . He assumed ... "Jim is a great fit for Provista," says ...
(Date:5/4/2017)... 2017  Fortuna Fix Inc. (" Fortuna "), a ... to eliminate the need for embryonic and fetal stem cells ... diseases. Fortuna announced today the launch ... Fehlings , MD, PhD; Father Kevin FitzGerald , S.J., ... Professor James Giordano , PhD. "We are ...
Breaking Medicine Technology:
(Date:5/26/2017)... ... May 26, 2017 , ... ... CareFusion NOX-T3 portable sleep monitor with its Somnoware Sleep Device Interface (SDI). Somnoware ... for diagnostic device operations. With this platform, initializing devices and importing studies are ...
(Date:5/26/2017)... ... May 26, 2017 , ... via ... antimicrobial, mesh back 24/7 task chair specifically designed for clinical areas. Genie Copper ... thrilled to partner with Cupron® to provide customers with a game changing chair ...
(Date:5/26/2017)... ... May 26, 2017 , ... Yisrayl Hawkins, Pastor and Overseer ... week that is focusing on the Peace Agreements being discussed by President Donald Trump ... in a race to try to speed up peace talks in the continuous battle ...
(Date:5/26/2017)... San Francisco, CA (PRWEB) , ... May 26, 2017 , ... ... San Francisco, is proud to announce a new, informational blog post on insurance options. ... tooth surgery, checking insurance plans may help save time and money. Visiting an in-network ...
(Date:5/26/2017)... , ... May 26, 2017 , ... ... this year’s recipient of proceeds from its 14th Annual Clays for Kids fundraiser, ... County Road 30, Bennett, Colorado. , As part of BluSky’s partnership with ...
Breaking Medicine News(10 mins):