Johnson & Johnson to pay $1.2 billion in multi-state, federal settlement

By Bryan Cohen | Nov 21, 2013

RALEIGH, N.C. (Legal Newsline) - North Carolina Attorney General Roy Cooper announced a $38.8 million recovery Wednesday as part of a multi-state and federal settlement with Johnson & Johnson to resolve allegations of improper drug marketing.

The New Jersey-based Johnson & Johnson must pay $1.2 billion in total to multiple states and the federal government to resolve allegations it improperly marketed the atypical antipsychotic drugs Risperdal and Invega with its subsidiary Janssen Pharmaceuticals Inc.

"Patients and health care professionals deserve to have accurate information before taking or prescribing drugs," Cooper said. "Pharmaceutical companies have an obligation to make sure they are properly marketing their drugs for approved uses and not spreading misinformation."

North Carolina and the other states alleged Johnson & Johnson and Janssen promoted and marketed Risperdal and Invega for uses not approved by the U.S. Food and Drug Administration, including the treatment of hyperactive children and elderly dementia patients. It is illegal for manufacturers to market or promote drugs for unapproved use.

North Carolina's $38.8 million recovery will go toward state Medicaid efforts and to public schools.

In addition to the civil matters, Janssen will plead guilty in federal court to a criminal misdemeanor charge of misbranding Risperdal and pay an added $400 million in criminal forfeitures and fines to the federal government.


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