A lawsuit filed by a whistleblower working with the Office of the Inspector General of Pennsylvania against Johnson & Johnson and one of their subsidiaries, Janssen Pharmaceuticals Inc., was recently settled for $158 million. The case was filed in 2004 after the whistleblower, Allen Jones, discovered the company was putting money into a pharmacist's unregistered account for promoting their anti-psychotic medication, Risperdal.
The whistleblower's discovery led to several claims of fraud against Janssen. In addition to providing kickbacks to pharmacists, the pharmaceutical manufacturer was found to have improperly and fraudulently marketed Risperdal to Medicaid patients in Texas. Prescriptions for Medicaid patients in Texas accounted for $579 million out of billions of dollars of revenue the company generated selling the costly drug.
Moreover, Janssen was accused of exaggerating Risperdal's effectiveness and safety. And, the company allegedly promoted the drug as safe for children, despite not having approval from federal officials. Jones said after the settlement was announced that Janssen "subverted science and influenced others to betray the people they were supposed to be taking care of." The whistleblower will receive part of the settlement.
Contact the Houston whistleblower protection lawyers of Ross Law Group at 713-482-6910, if you or someone you know has questions about reporting illegal employer activities.