Monday, February 28, 2011

Johnson & Johnson--motion to dismiss denied (Risperdal)

Bloomberg is reporting that "Johnson & Johnson must defend a lawsuit by the U.S. Justice Department claiming the company paid kickbacks to influence sales of its antipsychotic drug Risperdal to nursing home patients, a judge ruled today.  J&J asked the judge to dismiss the complaint, arguing that payments it made to Omnicare, Inc., the largest U.S. pharmacy for nursing home patients, were allowable rebates and not illegal kickbacks. U.S. District Judge Richard Stearns ruled in federal court in Boston that the case may proceed against J&J, the world’s largest maker of health-care products. "  Click here for the full story.

This is a big deal because it appears that J&J is asserting a more aggressive approach to defending qui tam lawsuits like this one.  The industry is watching J&J to determine how it should defend against qui tam lawsuits.

The case is U.S. ex re. Lisitza and Kammerer v. Johnson & Johnson, 07-10288, 05-11518, U.S. District Court, District of Massachusetts (Boston).

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