Johnson & Johnson Engaged in Elaborate Drug Profit Kickback Scheme, says Dept. of Justice Lawsuit

Drug maker Johnson & Johnson paid tens of millions of dollars in kickbacks to nursing home pharmacies in order to boost the sale of its drugs, says a Justice Department lawsuit.

The payments were often disguised as grants or "educational funding," says the lawsuit, and they were directed to Omnicare, a prominent nursing home pharmacy company.

The elaborate kickback scheme caused sales of Johnson & Johnson drugs to skyrocket. Sales of the antipsychotic drug Risperdal, for example, helped J&J drug purchases from Omnicare nearly triple from $100 million to $280 million a year.'

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