US Medicaid fraud case: Johnson & Johnson

Johnson & Johnson has settled for $158m over allegations that a subsidiary defrauded a state healthcare programme in the US state of Texas. Mr. Jones, a former employee of the Pennsylvania Inspector General's office, said he learned of Johnson & Johnson's actions in Texas while investigating similar claims in his home state. In 2006, the state of Texas joined the suit.

Judges in other states have also ordered the subsidiary, Janssen, to pay millions for similar accusations, but those cases are still under appeal. Allen Jones, who will obtain element of the settlement, told reporters that while the payment was enough punishment, this industry will not alter its behavior until executives are prosecuted, until executives really go to jail for the frauds they carry out.

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