Johnson & Johnson Settles Multistate False Marketing Claims for $181 Million

Posted on Thursday, September 6, 2012

  • 06
  • September

Johnson & Johnson has agreed to pay over $180 million to settle claims relating to injuries caused by their antipsychotic drug Risperdal. According to New York Attorney General, the settlement is the "largest multistate consumer protection-based pharmaceutical settlement" on record.

Claimants from the District of Columbia and 36 states including Texas allege that J&J violated several consumer protection laws by falsely marketing Risperdal by promoting it for uses not approved by the U.S. Food and Drug Administration.

The FDA approved Risperdal in 1993 to treat schizophrenia. However, the drug was found allegedly marketed as a treatment for Alzheimer's when it wasn't approved for such use by the FDA. According to the compliant, J&J also falsely Ok'd the use of the drug for children.

Judges throughout the country have ordered the pharmaceutical giant to pay millions in damages for illegally marketing the drug.

Part of the agreement includes implementing policies to ensure that financial incentives aren't given to encourage off-label marking that could mislead doctors about its uses and potentially put patient's lives in danger.

The settlement also includes false marketing claims relating to Invega and the heart medication Natrecor.

Founded in 1886, Johnson & Johnson is listed among the Fortune 500 and manufacturers pharmaceutical drugs and products as well as medical devices.

Source: Businessweek, David Voreacos and Margaret Cronin Fisk, J&J Will Pay $181 Million to Settle Risperdal Ad Claims, Aug 30, 2012

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