On April 8, 2011, Johnson & Johnson (“J&J”) entered into a settlement agreement with the U.S. Securities and Exchange Commission (“SEC”) as well as the U.S. Department of Justice for bribing European doctors and paying kickbacks for contracts to Iraq under the United Nations’ Oil-for-Food Program. According to the SEC, J&J’s actions violated the Foreign Corrupt Practices Act. J&J agreed to pay $70 million to settle the civil and criminal charges.

Specific SEC Allegations Involving J&J Bribes and Kickbacks

The SEC charged J&J with bribing foreign doctors in several countries to prescribe its drugs and medical devices. Specifically, the SEC alleged that from 1998 through 2006, J&J paid doctors in Greece to use its surgical implants; from 2000 to 2006, J&J bribed Polish doctors and hospital administrators in exchange for contracts; and from 2002 to 2007, J&J paid Romanian doctors to prescribe the manufacturers’ drugs. In addition to the bribery allegations, the SEC also alleged that from 2000 to 2003, J&J paid kickbacks to Iraq to obtain 19 contracts under the United Nations’ Oil-for-Food Program. Although J&J did not admit or deny the allegations, it agreed to settle claims with the SEC for $48.6 million and pay a $21.4 million fine to the Justice Department to settle the criminal charges. J&J is also under investigation by the United Kingdom Serious Fraud Office; a settlement in that investigation is anticipated.

Mounting Problems for J&J

In addition to this latest obstacle, the company is also being monitored by the U.S. Food and Drug Administration (“FDA”) following several drug recalls, including Tylenol, over the past year, as well as defending numerous lawsuits filed by individuals who received defective ASR and Pinnacle hip implants. In August 2010, DePuy Orthopaedics, a J&J subsidiary, issued a nationwide recall of the ASR hip implant systems, which has spawned a surge of litigation. J&J stands to lose billions of dollars as the DePuy lawsuits move forward.

J&J DePuy ASR and Pinnacle Lawsuits

If you or a loved one has experienced any problems because of a defective ASR or Pinnacle hip system, you may be able to file a hip replacement lawsuit seeking compensation for your medical expenses, pain and suffering, lost wages and more. Contact one of our lawyers today for a free and confidential hip replacement lawsuit evaluation. The lawyers at Bernstein Liebhard LLP have extensive litigation experience, and have recovered billions of dollars for their clients. In addition to being staunch advocates for your claim, our hip replacement injury lawyers also provide personal attention to guide you through the complex litigation process.

Published November 17, 2011 by