Saturday, April 28, 2012

J&J needs a cure: new CEO allegedly had links to fraud - Forbes

A motion filed last week in a potential multi-billion healthcare fraud case against Johnson & Johnson provides another apparent example of how to succeed in business without really complying.
The federal government states in a motion that Alex Gorsky, who is set to become Johnson & Johnson’s next chief executive officer this month, “was actively involved in matters at issue in this case,” which alleges Johnson & Johnson paid kickbacks to induce Omnicare, the nation’s largest nursing home pharmacy, to purchase and recommend Risperdal and other J&J drugs. Gorsky, the government says, “has firsthand knowledge of the alleged fraud.”
The government says Gorsky “also was involved in approving payments to Omnicare under the 2000 Consulting and Services Agreement,” which the government alleges were actually kickbacks.

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