Former Owners of Therakos, Inc. Pay $11.5 Million to Resolve False Claims Act Allegations of Promotion of Drug-Device System for Unapproved Uses to Pediatric Patients

PHILADELPHIA, PA - United States Attorney William M. McSwain announced that Johnson & Johnson ("J&J") subsidiary Medical Device Business Services, Inc. ("MDBS") agreed to pay $10 million to settle allegations under the False Claims Act that Therakos, Inc., a former J&J subsidiary, engaged in promotion of the UVAR XTS and CELLEX extracorporeal photopheresis ("ECP") systems for unapproved uses in pediatric patients between 2006 and 2012. The Gores Group ("TGG") agreed to pay an additional $1.5 million to resolve allegations that Therakos continued those alleged improper sales and promotion practices after TGG acquired Therakos from J&J in 2012.

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