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 06:59:03Quote: 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 â€œare continuing to pursue both criminal and civil actions,â€ the company said. â€œDiscussions have been ongoing in an effort to resolve criminal penalties under the Food Drug and Cosmetic Act related to the promotion of Risperdal,â€ J&J said. â€œCertain issues remain open before a settlement can be finalized.â€ New BrunswickNew Jersey, said it wasnâ€™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 companyâ€™s Janssen Pharmaceuticals unit over Risperdal sale practices. The lawsuits, brought under the U.S. False Claims Act, were filed under seal and havenâ€™t yet been made public. States Sued Terri Mueller, a company spokeswoman, didnâ€™t immediately return a call seeking comment. â€œThe ultimate resolution of the above criminal and these civil matters is not expected to have a material adverse effect on the companyâ€™s financial position,â€ J&J officials said in yesterdayâ€™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 antipsychoticâ€™s safety. J&J officials said in yesterdayâ€™s filing that case is on appeal. In June, a South Carolina judge ordered J&J officials to pay $327 million in penalti...
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