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Johnson & Johnson to Pay $2.2 Billion to 46 States To Settle Alleged Unfair Marketing

On Monday, the California Attorney General announced a settlement with Johnson & Johnson regarding alleged unfair marketing practices by its Janssen Pharmaceuticals subsidiary. About 45 other states participated in the $2.2 billion settlement. California's share of the settlement is $89 million.

The settlement resolved allegations of:

"... unlawful marketing practices, including off-label promotion and kickbacks, to promote the sales of [Janssen's] atypical antipsychotic drugs, Risperdal and Invega... As part of this global resolution, the companies have agreed to resolve civil liabilities for their alleged unlawful conduct, which caused false and/or fraudulent claims to be submitted to Medi-Cal and improper Medi-Cal purchases..."

Terms of the settlement require the companies to o compensate the Medicaid programs. The companies will pay $1.114 billion as the combined federal and states’ share of the civil settlement for both drugs. The California Department of Health Care Services will be reimbursed for $44.5 million in losses from the fraud. the remainder will pay for Medi-Cal fraud and enforcement efforts. Also:

"Janssen Pharmaceuticals, Inc. plead guilty to a criminal misdemeanor charge of misbranding Risperdal in violation of the Food, Drug, and Cosmetic Act. As part of the criminal plea, Janssen has agreed to pay an additional $400 million in criminal fines and forfeitures."

California Attorney General Kamala Harris said about the settlement:

"Motivated by profit, these companies made false claims that jeopardized the health of California’s most vulnerable patients, including children and senior citizens—and left California taxpayers with the bill... Today’s record settlement reinforces the California Department of Justice’s commitment to rooting out this kind of greed...”

Some of the other state attorney generals that announced this settlement include Florida, Maryland, Massachusetts, and New York.

On the same day, Johnson & Johnson and two of its subsidiaries (e.g., Janssen Pharmaceuticals, and Scios, Inc.) announced that the settlement agreement included 45 states plus the U.S. Justice Department. This resolved allegations about the marketing of Invega and Naturecor by Scios Inc., plus allegations about Janssen's interactions with Omnicare, Inc., pharmacy services.

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