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