Johnson & Johnson Loses Case on Allegedly Fraudulent Marketing Practices, Ordered to Pay $257M

Pharmaceutical company Johnson & Johnson has lost a lawsuit in Louisiana that alleged the company made misleading claims about the safety of its antipsychotic drug Risperdal, ending in a $257.7 million loss for the pharmaceutical giant, according to a Bloomberg Businessweek news report.

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In 2003, Johnson & Johnson allegedly sent letters to 700,000 physicians, claiming Risperdal was the better antipsychotic drug in comparison to its competitors. The Food and Drug Administration sent the pharmaceutical company a warning letter saying it is making false and misleading claims that did not properly alert physicians about the risks of diabetes and that over-exaggerated the drug’s quality over other competitor’s medications, according to the report.

Jurors in a Louisiana state court said in the verdict that Johnson & Johnson officials defrauded the federal Medicaid program by making false claims about Risperdal. Consequently, Johnson & Johnson will pay $7,250 for each of the more than 35,000 violations of the state’s Medical Assistance Programs Integrity Law, amounting to more than $257 million, according to the report.

Read the Bloomberg Businessweek news report about Johnson & Johnson’s verdict.

Read other coverage about pharmaceutical company fraud:

AARP to Join False Claims Lawsuit Against Pharmaceutical Companies

CEOs of Drug Companies Guilty of Off-Label Promotion May Face Misdemeanor Prosecutions, Warns FDA

Merck Seeks Appeal on $4.6M Verdict in Fraud Case

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