J&J Said to Pay More Than $2.2 Billion in Risperdal Accord
Johnson & Johnson (NYSE: JNJ) is said to pay more than $2.2 billion as a settlement for a misdemeanor criminal charge into the marketing of Risperdal. This settlement doesn't include Risperdal claims in Louisiana and South Carolina.
The FDA in 1993 approved Risperdal for psychotic disorders including schizophrenia, a rather limited market. The U.S. government has probed Risperdal sales since 2004 with allegations that the company marketing the drug for unapproved uses.
Investigators in 2006 questioned if Johnson & Johnson improperly marketed Risperdal for treating dementia without FDA approval and for children before approval.
Johnson & Johnson agreed in August 2011 to a settlement for a misdemeanor drug charge for Risperdal's marketing paying $1.2 billion in fines for 4,600 violations of the Deceptive Trade Practices Act and 239,000 violations of the state's False Claims Act.
The company set aside $600 million as reserves for potential settlements last year. The reserve was to cover marketing campaign lawsuits and possible Omnicare kickback claims settlement.
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