Federal Judge Rules Johnson & Johnson May Be Liable for Paying Kickbacks

A federal judge’s ruling[2/25/11]that Johnson & Johnson (JNJ) may be liable for paying kickbacks to nursing homes that prescribed the antipsychotic Risperdal is a reminder that just because you signed a contract doesn’t mean the contract is legal.

J&J thought it could evade the anti-kickback statute because it signed an agreement that didn’t directly involve sales of Risperdal. The judge, however, said that contract was merely a “subterfuge” to disguise kickbacks meant to encourage the prescribing of Risperdal.

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JNJ May Be Liable for Antipsychotic Kickback Scheme