Healthcare giant Johnson & Johnson's (JNJ) $2.2 billion settlement with the Justice Department last year regarding its sales practices is on hold, as the company seeks to avoid language in the agreement that may make it vulnerable to private lawsuits, the Wall Street Journal reported.
The investigation was into allegations that the company illegally promoted some drugs, including the antipsychotic Risperdal. The deal is not yet announced as J&J wants to avoid admitting to conduct which may affect its position in the pending lawsuits alleging that Risperdal caused serious side effects in kids.
J&J had submitted side-effect data to U.S. regulators while seeking permission to sell Risperdal for use in children and adolescents. That data had addressed a concern whether the drug increased levels of a hormone in children, which stimulates breast development and milk production in women.
As part of the settlement, the prosecutors want J&J to admit that the data played down the risks from that increase. However, J&J wants prosecutors to agree not to pursue the charge further.
The wording could affect several lawsuits alleging Risperdal caused side effects such as growth of breasts in boys who took the drug.
JNJ closed down 0.4 percent on Thursday at $85.15.
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