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Brett Emison
Brett Emison
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Johnson & Johnson Reserves Additional $600 Million For Settlement

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Johnson & Johnson – the same company that brought you "no more tears" – has set aside an additional $600 million in reserves for a potential settlement over allegations the company paid kickbacks to a company that provides medication to nursing homes. Lawsuits allege that Johnson & Johnson made improper payments to drug distributor Omnicare in order to get the company to purchase more of J&J's schizophrenia drugs Risperdal and Invega as well as the respiratory drug Natrecor.

Johnson & Johnson's most recent announcement comes on top of an additional $3.3 billion chard the company took in the 4th quarter related to Risperdal lawsuits and investigations.

Johnson & Johnson has had its share of difficulties with at least 11 different product recalls in 2011. The J&J recalls included contact lenses, syringes filled with prescription medications, hernia devices, artificial hip implants, and even Tylenol.

The Risperdal case potentially mirrors J&J's conduct involving its DePuy artificial hip implants. The Risperdal cases allege that Johnson & Johnson improperly paid a drug distributor to promote and prescribe Johnson & Johnson medications. Similarly, Johnson & Johnson paid more than $80 million to orthopedic surgeons around the country to promote its DePuy artificial hip products. The US Department of Justice, in 2007, brought charges against four medical device companies – including J&J's DePuy – claiming the companies were using kickbacks to doctors in order to promote their products. But DePuy kept paying doctors. $48 million to doctors in 2009 and $33 million to doctors in 2010.

Reports suggest that Johnson & Johnson will use the $600 million Risperdal set-aside to finance a $2.2 billion settlement that includes both civil and criminal penalties.

[More on Johnson & Johnson]

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(c) Copyright 2012 Brett A. Emison

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  1. up arrow

    A customer victim speaks
    Risperdal reproached.
    The saga of the so called *atypical antipsychotics* is one of incredible profit.Eli Lilly made $65 BILLION on Zyprexa.Described as *the most successful drug in the history of neuroscience* the drugs at $12 pill are used by states to medicate deinstitutionalized mental patients to keep them out of the $500-$1,200 day hospitals.
    There is a whole underclass block of our society,including children in foster care that are the market for these drugs,but have little voice of protest if harmed by them.I am an exception,I got diabetes from Zyprexa as an off-label treatment for PTSD and I am not a mentally challenged victim so I post.

    –Daniel Haszard