J&J to pay $158 million to settle Texas Risperdal case | Odd Onion

J&J to pay $158 million to settle Texas Risperdal case

January 19, 2012
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AUSTIN, Texas | Thu Jan 19, 2012 12:43pm EST

AUSTIN, Texas (Reuters) – Johnson Johnson said on Thursday it will pay $158 million to settle a Texas lawsuit accusing the drugmaker of improperly marketing its Risperdal anti-psychotic drug to state residents on the Medicaid health program for the poor.

The settlement fully resolves all Risperdal-related claims in Texas, the company said. The agreement is specific to the state of Texas and does not involve any other ongoing state or federal Risperdal litigation.

The deal settles claims brought by Texas in 2004 and involves alleged Medicaid overpayments during the years 1994 to 2008 “and will circumvent potentially lengthy and costly appellate activities,” according to a statement from JJ’s Janssen Pharmaceuticals unit.

The complaint against JJ and several of its units filed in U.S. district court in Texas had alleged that company representatives “targeted every level of the Texas Medicaid Program with misrepresentations about the safety, superiority, efficacy, appropriate uses and cost effectiveness of Risperdal.”

(Reporting by Corrie MacLaggan; additional reporting by Bill Berkrot and Ransdell Pierson in New York; Editing by Michele Gershberg, Lisa Von Ahn and Gunna Dickson)

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