J&J Settles Illegal Marketing Claims Involving Risperdal

By Martin & Jones on August 9, 2012

In a recent regulatory filing, Johnson & Johnson revealed that it had reached an “agreement in principle” with the federal Department of Justice and a number of states involving marketing practices for Risperdal. Specifically, drug maker Johnson & Johnson reported that it had reached a settlement of three pending False Claims Act cases pending in Pennsylvania, California, and Massachusetts related to marketing of Risperdal, Invega, and Natrecor. The drug maker also reported that it had reached a tentative settlement agreement with 38 states and the District of Columbia to settle non-Medicaid actions in connection with the sales and marketing of Risperdal and Invega. Recent reports have suggested that Johnson & Johnson and the Department of Justice have agreed to a settlement for up to $2.2 billion which will resolve federal probes into the company’s drug marketing practices. The settlement amount purportedly includes a $400 million criminal fine for the illegal promotion of Risperdal.