Johnson & Johnson (JNJ) Financial News - J&J Tentatively Agrees to Settle Risperdal Criminal Charge
Johnson & Johnson (JNJ)
J&J Tentatively Agrees to Settle Risperdal Criminal Charge
2011-08-10 06:59:03
Quote: Johnson & Johnson (JNJ) said it reached an
agreement to settle a misdemeanor criminal charge related to
marketing of its antipsychotic drug Risperdal.
Justice Department and the U.S. attorney in
Philadelphia “are continuing to pursue both criminal and civil
actions,†the company said.
“Discussions have been ongoing in an effort to resolve
criminal penalties under the Food Drug and Cosmetic Act related
to the promotion of Risperdal,†J&J said. “Certain issues
remain open before a settlement can be finalized.â€
New BrunswickNew Jersey, said it
wasn’t sure a settlement could be reached on those claims.
J&J said it has been notified by the U.S. government that
the Justice Department will intervene or join multiple lawsuits
filed by whistleblowers against the company’s Janssen
Pharmaceuticals unit over Risperdal sale practices. The
lawsuits, brought under the U.S. False Claims Act, were filed
under seal and haven’t yet been made public.
States Sued
Terri Mueller, a company spokeswoman, didn’t immediately
return a call seeking comment.
“The ultimate resolution of the above criminal and these
civil matters is not expected to have a material adverse effect
on the company’s financial position,†J&J officials said in
yesterday’s filing.
Johnson & Johnson and the Janssen unit have been sued by 11
states seeking reimbursement for Medicaid or other public funds
paid on Risperdal prescriptions, the company said. The lawsuits
allege that the company promoted the drug for dementia, mood and
anxiety disorders and other unapproved uses, or downplayed
risks.
Louisiana ordered the drugmaker to pay
almost $258 million to state officials for making misleading
claims about the antipsychotic’s safety. J&J officials said in
yesterday’s filing that case is on appeal.
In June, a South Carolina judge ordered J&J officials to
pay $327 million in penalti...Open whole article (external link)