Johnson & Johnson Reserves Funds for Settlement Johnson & Johnson said Friday that it would add about $600 million to its reserves to cover a possible settlement of allegations that it paid kickbacks to a company that dispenses drugs to nursing homes. Johnson & Johnson said it would take a one-time charge in the second quarter to cover a possible settlement of a whistle-blower lawsuit. In 2010, United States attorneys joined two lawsuits claiming that Johnson & Johnson made improper payments to Omnicare to get the company to buy more of its schizophrenia drugs Risperdal and Invega and a respiratory drug, Natrecor, and that Omnicare's pharmacists then recommended doctors prescribe those drugs. Johnson & Johnson said it gave standard discounts to Omnicare, and that those discounts were not illegal as long as they were properly disclosed.