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.
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
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