Corporate Compliance

Johnson & Johnson faces U.S. suit for paying kickbacks to nursing home pharmacy

Compliance Monitor, January 20, 2010

The United States filed a civil False Claims Act complaint against Johnson and Johnson (J&J) for its participation in an alleged kickback scheme, according to a Department of Justice (DOJ) press release.
 
The U.S. filed complaints that J&J paid millions of dollars in kickbacks to Omnicare Inc., the nation’s largest pharmacy that specializes in dispensing drugs to nursing home patients, to induce the purchase and recommendation of J&J drugs. The DOJ reports that more than 80% of the time, physicians accepted Omnicare’s recommendations.
 
In November 2009, Omnicare entered into a $98 million settlement agreement that resolved several civil liabilities under the False Claims Act, including receiving kickbacks from J&J.

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