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International Bribery, Oil, Drugs…and Artificial Hips??

| Apr 18, 2011 | DePuy Hip Replacement, Drug and Medical Device Litigation

Johnson and Johnson has admitted that it bribed European doctors and paid kickbacks in Iraq to win contracts to sell drugs and artificial joints.

The late Warren Zevon sang “Send lawyers, guns, and money, the sh*t has hit the fan”.  Is that what they are thinking these days at Johnson & Johnson?

J & J is the parent of DePuy, Inc., the manufacturer of the ASR, a metal on metal replacement hip system that doctors around the world believe is defective and was recalled in 2010.   According to the SEC, Johnson & Johnson carried out a program since 1998 of using slush funds, sham contracts, and offshore companies to bribe hospitals and doctors in Europe and Iraq to sell drugs and install their artificial joints.  The SEC also claims that Johnson & Johnson made illegal payments to Iraqi officials to win contracts under the United Nations Oil for Food Program.

Read the full story here:  Johnson & Johnson Will Pay $70 Million Over Bribery Claims

Read the SEC’s filed complaint here:  SEC Complaint against J & J

The SEC action follows up a United Kingdom action against British businessman Robert Dougall, then director of marketing at DePuy International (DPI), another subsidiary of Johnson & Johnson.  He pleaded guilty in the regarding his involvement in £4.5m of payments to Greek surgeons to encourage them to use DPI products.  From 1998 to 2006, J&J earned more than $24 million in profits by bribing Greek doctors to buy surgical implants including artificial knees and hips, the SEC said.

Read the full story here: SFO Whistleblower Robert Dougall is Spared Prison

What was the response from embattled Johnson & Johnson?

Johnson & Johnson is paying $70 million to resolve the bribery claims.  J & J  agreed to pay $48.6 million in disgorgement of profits and interest to settle the SEC’s claims, a $21.4 million fine to settle criminal charges filed by the Justice Department, and admitted the allegations of the charges filed by the Justice Department.  J & J has recalled more than 50 products since the start of 2010 including the DePuy ASR replacement hip, which was affected thousands of people worldwide.

Click here to find out more about the Brandi Law Firm DePuy Hip Attorneys.