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

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

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SOURCE U.S. Department of Justice
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