Johnson & Johnson Agrees to Pay $2.2 Billion in Personal Injury Settlement, Various States Receive Settlement Money

On Monday, November 4th, Johnson & Johnson agreed to pay $2.2 billion for a personal injury settlement involving off-label use of their antipsychotic, Risperdal. Now, various states are receiving settlement money.

According to the original lawsuit, Johnson & Johnson and their subsidiary Janssen promoted Risperdal for off-label and unapproved uses between 1999 and 2005, such as controlling aggression in elderly dementia patients, as well as behavioral disturbances in children. Risperdal was approved in 1993, launched in 1994, and lost patent protection in 2008; the FDA did not approve pediatric use of the drug until 2006.

The state of Indiana, for example, will receive nearly $17 million from Johnson & Johnson and its subsidiary Janssen Pharmaceuticals. The money will go to Indiana’s Medicaid program, which joined the lawsuit due to Medicaid fraud charges for off-label use of Risperdal and Invega, among other drugs produced by J&J.

“Through the help of whistleblowers who used the False Claims Act to expose illegal billings and stop fraud against the Medicaid program, our state will recover a record amount from a drug company to reimburse Indiana for tax dollars wrongly paid out,” Indiana Attorney General Greg Zoeller said.

Michigan will receive $42 million of the $2.2 billion personal injury settlement. State Attorney General Bill Schuette said that the money will go to Michigan’s Medicaid program. Justice department officials said that J&J used illegal marketing tactics and kickbacks to persuade physicians and pharmacists to prescribe Risperdal, Invega, and other drugs for complications that were not approved by the FDA. The off-label prescriptions caused personal injury to patients taking the drug, especially weight gain that led to Type 2 diabetes.

Ohio’s Medicaid program will receive $52.7 million of the settlement money, for the same personal injury and federal charges.

The $2.2 billion settlement figure includes $1.72 billion in civil settlements with both federal and state governments, along with $485 million in criminal fines and forfeited profits. Johnson & Johnson also agreed to plead guilty to one misdemeanor.

This settlement will be among the largest between pharmaceutical manufacturers and the US government. Others include the settlement with GlaxoSmithKline PLC, which agreed to pay $3 billion and plead guilty to criminal charges involving antidepressants Paxil and Wellbutrin, along with the diabetes drug Avandia; and in 2009, Pfizer Inc. agreed to pay $2.3 billion to resolve an investigation into the painkiller Bextra, which has been recalled, along with some other drugs.

The Strom Law Firm Can Help with Pharmaceutical Personal Injury Cases

Strom Law Firm, L.L.C. is a leader in the consumer protection battle against dangerous prescription drugs and medical devices, like Risperdal, which can cause personal injury or wrongful death. We represent individuals who have been killed or injured by dangerous or defective pharmaceuticals. If you or a family member have been injured or killed after using a dangerous drugs or medical products such as Risperdal, contact our dangerous drug lawyers as soon as possible so that we can begin taking steps to preserve evidence and your claim immediately. We offer free consultations to discuss the facts of your case. 803.252.4800