Janssen Pharmaceuticals, Inc., a Johnson & Johnson (JNJ) company, on Thursday announced a settlement and consent decree with 36 states and the District of Columbia regarding allegations related to promotional and marketing practices for its atypical antipsychotic prescription drug Risperdal.
The company will pay about $181 million, an amount which has been previously accrued, as part of a consent decree to resolve state consumer protection law claims in the 36 states and the District of Columbia related to the matter. As part of the settlement, Janssen reaffirmed it would not promote any of its atypical antipsychotics for off-label uses or make any false or misleading claims related to those products. The company said it has a system in place to ensure that marketing and promotion policies are followed.
The settlement is not an admission of wrongdoing or violation of any law or regulation, and the company agreed to the settlement to resolve the concerns of the attorneys general under state consumer protection laws and to avoid unnecessary expense and a prolonged legal process, Janssen said in a statement.
In addition to the District of Columbia, the 36 states participating in the settlement are: Alabama, Arizona, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, Washington, Wisconsin and Wyoming.
Thursday's settlement represents the largest multi-state consumer protection-based pharmaceutical settlement in history, according to New York Attorney General Eric Schneiderman. The settlement is also separate and distinct from the recent disclosure made by Johnson & Johnson concerning an agreement in principle with the Department of Justice to settle three civil False Claims Act matters that are pending in U.S. courts: the sales and marketing of Risperdal and Invega; the sales and marketing of Natrecor; and allegations that Omnicare, Inc. was provided with rebates and other payments regarding Risperdal and other products. Johnson & Johnson share are currently trading at $67.11, down 26 cents.
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