Tuesday, March 01, 2011

J and J Faces Kickback Charge

Johnson & Johnson must defend a lawsuit by the DOJ claiming the company paid kickbacks to influence sales of its antipsychotic drug Risperdal to nursing home patients.

J&J asked the judge to dismiss the complaint, arguing that payments it made to Omnicare Inc., the largest U.S. pharmacy for nursing home patients, were allowable rebates and not illegal kickbacks. U.S. District Judge Richard Stearns ruled in federal court in Boston that the case may proceed against J&J, the world’s largest maker of health-care products.