JOHNSON & JOHNSON SETTLES MEDICAID FRAUD WHISTLEBLOWER SUIT FOR $158 MILLION

Johnson & Johnson has agreed to pay $158 Million to settle a major whistleblower lawsuit alleging that the company for paying kickbacks and for other illegal marketing practices to bosst Resperal, a pill for schizophrenia and bipolar disorder. The lawsuit was originally filed by a former employee of the office of Inspector General in Pennsylvania who said he learned of the actions while investigating similar claims in his home state. Last year a judge in South carolina ruled that the company must pay $327 million after a jur found it guilty of overstating the safety and effectiveness of the same drug. In 2010 a Louisiana jury found the company violated the states Medicaid fraud act and awarded $258 million in damages.