J&J Agrees to $181M for Consumer Fraud
Consumer fraud claims have caused Johnson & Johnson to potentially pay $181M to 36 U.S. states and the District of Columbia for improperly marketing the antipsychotic drug, Risperdal, for unapproved uses.
J&J Prepares for Settlement
J&J has set aside a large amount of money for these case, but J&J says that these funds are used “to achieve a prompt and full resolution of these state claims,” said Michael Yang, president of J&J's Janssen Pharmaceuticals, to news outlets. According to Reuters, the company said that the settlement was not an admission of wrongdoing.
State and Federal Claims against J&J
Not only have most of the states in the U.S. targeted J&J in court, there have also been federal claims for separate, but related allegations concerning J&J improperly promoting the Risperdal for use in nursing homes, according to Reuters.
- In Spring of 2012, an Arkansas state judge ordered J&J to pay a $1.1 billion penalty for J&J using fraudulent tactics to sell Risperdal.
- J&J agreed to pay $158 million to settle a similar lawsuit by Texas.
- J&J is appealing decisions in Louisiana and South Carolina.
- J&J successfully appealed another similar case in Pennsylvania.
- Claims brought by West Virginia involving Risperdal were dismissed.
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