J&J's penalty is $1.1 billion in Risperdal case

11:59 AM, Apr. 11, 2012

Johnson & Johnson was told to pay $1.1 billion by a state judge after an Arkansas jury found the company’s officials misled doctors and patients about the risks of the antipsychotic drug Risperdal.

Jurors in Little Rock yesterday said the company’s marketing campaign also violated consumer-protection laws. The panel deliberated about three hours before finding J&J and its Janssen unit engaged in "false or deceptive acts" by sending a 2003 letter touting Risperdal as safer than competing drugs to more than 6,000 doctors across the state.

The state was seeking more than $1.25 billion in penalties over the Risperdal marketing campaign. It’s the third jury verdict against J&J, the second-biggest maker of health products, in cases where states alleged it hid Risperdal’s risks and tricked Medicaid regulators into paying more than they should have for the medicine. Louisiana and South Carolina juries also found the company’s Risperdal marketing violated consumer-protection laws.  READ MORE

 

J&J Said to Agree to Pay $1 Billion in Risperdal Marketing Probe

January 18, 2012, 9:09 AM EST

By Margaret Cronin Fisk, Jef Feeley and David Voreacos

Jan. 6 (Bloomberg) -- Johnson & Johnson will pay more than $1 billion to the U.S. and most states to resolve a civil investigation into marketing of the antipsychotic Risperdal, according to people familiar with the matter.

J&J, the world’s largest health products company, reached an agreement last week with the U.S. attorney in Philadelphia, according to the people, who weren’t authorized to speak about the matter. Negotiations over a possible criminal plea are still under way, they said.

The U.S. government has been investigating Risperdal sales practices since 2004, including allegations the company marketed the drug for unapproved uses, J&J has said in Securities and Exchange Commission filings. The company said it has been in negotiations with the U.S. to settle the investigation.

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