The board has given him the job but will he keep it? The investigation goes back to 1999 when the FDA did not approve Risperdal for behavioral disturbances with dementia and stated there was not enough data. 
The FDA warned it was not safe enough to market for the elderly. The link below has some history from 2010. Omnicare itself paid $100 million to settle the case with the justice department. Risperdal of course is now off patent but at the time there was a lot of money to be made out there.
Omnicare, Johnson & Johnson, Risperdal, Whistleblowers and Legal Woes Back in the News Again
Here’s a bit of a tongue and cheek post that kind of fits here from a few years ago…it’s what and who’s making money in healthcare today.
The Two Hot Words in Healthcare today Whistleblowers and Algorithms
Omnicare Inc. paid kickbacks to one of Illinois' most prominent nursing home families. Just a couple weeks ago J and J received a $1.1 billion dollar fine from a judge in Arkansas over Risperdal. I believe J and J is appealing that one so more time in the courts perhaps. I guess we will find out how much J and J knows about their new CEO and more about how the board came to their decision. I might think shareholders could want a little more information too. When you add on recalls, J and J seems to have more housecleaning than ever thought could be possible.
Johnson and Johnson Gets a $1.1 Billion Dollar Penalty in Arkansas Risperdal Case
Gorsky recently stated that his big effort was going to be on recalls, but gee which area does one tackle first? Implants are probably right up there on the top but it’s mostly legal actions at this point and I would guess the drug manufacturing facilities are right up there being number one. BD
The federal government states in a motion that Alex Gorsky, who is set to become Johnson & Johnson’s next chief executive officer this month, “was actively involved in matters at issue in this case,” which alleges Johnson & Johnson paid kickbacks to induce Omnicare, the nation’s largest nursing home pharmacy, to purchase and recommend Risperdal and other J&J drugs. Gorsky, the government says, “has firsthand knowledge of the alleged fraud.”
The government says Gorsky “also was involved in approving payments to Omnicare under the 2000 Consulting and Services Agreement,” which the government alleges were actually kickbacks.
Despite the weight of federal and state investigations of the Risperdal allegations, Johnson & Johnson’s board of directors rewarded Gorsky by selecting him to be the next CEO.
http://www.forbes.com/sites/erikakelton/2012/04/17/new-jj-ceos-ties-to-fraud-case-show-jj-sees-no-need-for-a-cure/
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