A whistleblower suit against Johnson & Johnson (J & J) involving its anti-psychotic drug, Risperdal, has been settled for $158 million. The suit claimed that J & J overcharged Medicaid for the drug and wrongfully promoted it including for use by children. The whistleblower, Allen Jones, a former investigator for the Pennsylvania Office of Inspector General, reported as follows: "There were many trials with negative information that the company completely buried. They did not forward it to the FDA. They denied it even existed. Then, on a state-by-state level, they infiltrated the mental health delivery system."
Source: Boston Herald
The whistleblower suit was brought under the federal False Claims Act, which allows lawsuits by whistleblowers where a supplier or contractor to the government has overcharged it, deceived it or defrauded it in some way. Whistleblowers in suits under the False Claims Act may retain 15-25% of the money recovered.
Lexington, Kentucky whistleblower lawyer Robert Abell represents whistleblowers in suits under the False Claims Act; contact him at 859-254-7076.