Department of Justice files suit against Johnson & Johnson in connection with kickback scheme with Omnicare

Most assisted living residents need meds help, survey finds
Most assisted living residents need meds help, survey finds

The U.S. Department of Justice on Friday filed a lawsuit against Johnson & Johnson for its alleged role in a kickback scheme with Omnicare, the nation's largest long-term care pharmacy chain.

Between 1999 and 2004, Johnson & Johnson allegedly paid tens of millions of dollars to nursing home pharmacy supplier Omnicare. In return, Omnicare made recommendations to hundreds of nursing home pharmacists about Johnson & Johnson-made drugs, according to the complaint. In particular, it recommended that the pharmacists prescribe the antipsychotic Risperdal. The alleged deal increased Omnicare's annual purchase of Johnson & Johnson products from $100 million to more than $280 million. It also nearly lowered the “best price” of Risperdal that Johnson & Johnson was required to report to Medicaid.

In November of 2009, Omnicare paid $98 million to the government to settle its own role in the kickback scheme. The suit was filed in a Boston federal court.