A federal judge has denied a motion to dismiss a qui tam lawsuit filed against Johnson & Johnson, which accuses the company of involvement in an illegal kickback scheme.
The company sought to have claims brought by the Department of Justice, a number of whistleblowers, and numerous states dismissed, saying that the so-called illegal kickbacks were completely legal rebates. U.S. District Judge Richard Stearns found, however, the plaintiffs had sufficient evidence to go forward with the complaint. Stearns did remove several plaintiffs from the case, including the states of Nevada, Texas, and Illinois. Kentucky, Indiana, and Virginia remain part of the lawsuit.
The qui tam lawsuit, filed January 15, 2010, claims Johnson & Johnson was involved in a kickback scheme to push their antipsychotic drugs, namely Risperdal, on elderly nursing home residents that did not need them. According to the complaint, the drug-maker paid $50 million to Omnicare between 1999 and 2004 to get the company to prescribe Risperdal to elderly patients with dementia. The lawsuit also claims Johnson & Johnson hid those kickbacks as payments for services that Omnicare never actually provided.
To discuss filing a Qui Tam Lawsuit, please contact the Whistleblower lawyers of Tycko & Zavareei, LLP, by calling 202-973-0900.



