US Files Lawsuit Against Johnson & Johnson Over Kickback Scheme to Omnicare
Recently, the U.S. Department of Justice announced that it had filed a lawsuit against the drugmaker Johnson & Johnson. The lawsuit alleges that Johnson & Johnson paid Omnicare, the largest U.S. pharmacy for nursing home patients, millions to buy and recommend their drugs to elderly patients. Physicians reportedly accepted the pharmacists’ recommendations more than 80 percent of the time.
Johnson & Johnson had allegedly entered into agreements with Omnicare that gave the company increased rebates if it increased prescriptions of their drugs. In November 2009, Omnicare agreed to pay $98 million under a settlement deal related to this scheme.
The company has stated they believe “airing the facts will confirm that our conduct, including rebating programs like those the government now challenges, was lawful and appropriate.”