This week, the Justice Department announced the conclusion of an 8-year-long civil False Claims Act case against Johnson & Johnson and its subsidiary Scios, Inc. The qui tam case was brought in July 2005 by Nolan Auerbach & White’s client Joe Strom, a former Scios Area Manager. Both Defendants will collectively pay $184 million to resolve civil allegations that they unlawfully promoted their cardiac drug Natrecor for unapproved uses. In addition, in 2011, Scios agreed to pay an $85 million criminal fine and to plead guilty to a misdemeanor charge of introducing misbranded Natrecor into interstate commerce.
This settlement was part of a $2.2 billion global settlement between the government and Johnson & Johnson, which included criminal fines and forfeiture totaling $485 million and civil settlements with the federal government and states totaling $1.72 billion. In addition to Mr. Strom’s allegations, this settlement resolved criminal and civil liability arising from allegations relating to the prescription drugs Risperdal and Invega, including promotion for uses not approved as safe and effective by the FDA and payment of kickbacks to physicians and to Omnicare, the nation’s largest LTACH provider.
By courageous stepping forward and assisting the government in securing this global recovery, the whistleblowers collectively received over $167 million from the federal government, pursuant to the qui tam provisions of the federal False Claims Act.
More information for whistleblowers is located at the Nolan Auerbach & White website.