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Johnson & Johnson to Pay $52 Million in PA Drug Pricing Dispute
Johnson & Johnson must pay $52 million in damages and penalties after a Pennsylvania judge found the pharmaceutical company falsely reported the prices of its drugs. Pennsylvania Attorney General Tom Corbett announced Dec. 17, 2010, that a Commonwealth Court judge rendered the verdict after a five-week trial in Easton, PA. Johnson & Johnson has been ordered to repay more than $45 million to Medicaid and the PACE prescription drug program for senior citizens, along with more than $6.5 million in civil penalties. In 2004, Corbett's office sued Johnson & Johnson, several of its subsidiaries and 14 other drug companies, alleging they manipulated a pricing benchmark known as the “average wholesale price.” Corbett's office has recovered $49 million so far, and other cases are pending.
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