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Johnson & Johnson is accused of kickbacks on drug sales

Wall Street Journal, January 18, 2010

The Justice Department charged Johnson & Johnson with paying "tens of millions of dollars in kickbacks" to a nursing-home pharmacy company to boost sales of J&J drugs to nursing-home patients. Prosecutors, in a complaint filed in federal court in Boston, accused J&J of illegally paying Omnicare Inc. to buy J&J medicines and recommend their use to nursing homes. Under the arrangements, prosecutors alleged, Omnicare's annual purchases of J&J medicines nearly tripled to more than $280 million, the Wall Street Journal reports.