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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

New York State v. Purdue Pharma et al. (Prescription Opioid Epidemic)

New York State filed a lawsuit against numerous pharmaceutical manufacturers, including Johnson & Johnson, and distributors, including AmerisourceBergen, Cardinal Health, and McKesson, alleging their responsibility for the widespread availability and abuse of prescription opioid painkillers. The lawsuit claimed the defendants “deliberately betrayed their duties” to prevent the misuse and diversion of controlled substances “through a persistent course of fraudulent and illegal misconduct.” The lawsuit specifically accused AmerisourceBergen, Cardinal Health, and McKesson of “grossly negligent and/or willful misconduct” including failing to fix deficiencies in their compliance systems, hiring inadequately qualified and trained compliance and sales staff, helping pharmacies circumvent their opioid limits, and retaliating against employees who raised concerns about pharmacies that made suspicious opioid orders. In July 2021, several states announced they reached a settlement with J&J, AmerisourceBergen, Cardinal Health, and McKesson. J&J agreed to pay $5 billion, and the three distributors agreed to pay a combined total of nearly $21 billion: AmerisourceBergen – $6.4 billion; Cardinal Health – $6.4 billion; McKesson – $7.9 billion.

Misconduct Type
Health
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Complaint
3/28/2019
Contractors Involved Penalty
Total
McKesson $7,900,000,000
Cardinal Health, Inc. $6,400,000,000
AmerisourceBergen $6,400,000,000
Johnson & Johnson $5,000,000,000
Further Information Released
Distributors Press Release 7/21/2021
New York AG Press Release 7/21/2021
New York Settlement Agreement 7/20/2021
First Amended Complaint 3/28/2019

See also:

Federal Contractor Misconduct Database