Johnson & Johnson Being Sued for Drug Conspiracy

Johnson & Johnson (J&J) is the subject of a California lawsuit alleging that the "family company" colluded with pharmaceutical consultant Omnicare to push its drugs on nursing home residents. Among the charges are allegations that J&J violated federal Medicaid laws with its schemes to maximize profits.

According to the suit, J&J was paying kickbacks to Omnicare to promote its drugs above those of other manufacturers, and convincing doctors that switching to J&J drugs was in their patients' best interests. The arrangement also included whitewashing these kickbacks as "performance rebates" that would be issued as "year-end bonuses".'

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