Johnson & Johnson: Healthcare Manufacturer Agrees To Pay $2.2 Billion In Fraud Settlement (Video)
Nov 04, 2013 08:47 PM EST
Johnson & Johnson and its subsidiaries will pay more than $2.2 billion to resolve criminal and civil investigations over allegations that they "marketed three drugs for users that were never approved," Attorney General Eric Holder said, as reported by CNN.
The settlements also claim that the companies gave additional "kickbacks" to physicians and to nursing home pharmacies in order to promote the usage of the drugs.
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Holder said that the health care manufacturer had improperly marketed the schizophrenic drug Risperdal for treatment of psychotic symptoms in non-schizophrenic patients, even thought he drug was approved to treat only schizophrenia, CNN also reported.
Risperdal and Invega also were improperly marketed for dementia treatment, the attorney general said. This led to insurance companies paying for claims they never should have been paying for, news reports said.
The insurance companies then "lined their pockets at the expense of American taxpayers and patients," the attorney general said at a press briefing.
"The conduct at issue in this case jeopardized the health and safety of patients and damaged the public trust. This multibillion-dollar resolution demonstrates the Justice Department's firm commitment to preventing and combating all forms of health care fraud. And it proves our determination to hold accountable any corporation that breaks the law and enriches its bottom line at the expense of the American people," Holder added.
"Johnson & Johnson's promotion of Risperdal for unapproved uses threatened the most vulnerable populations of our society - children, the elderly and those with developmental disabilities," added Zane Memeger, U.S. Attorney for the Eastern District of Pennsylvania.
"This resolution allows us to move forward," Johnson & Johnson said in a statement.