Johnson & Johnson commits more than 238,000 violations of Arkansas’s Medicaid fraud laws

After an Arkansas jury found that Johnson & Johnson (JNJ) company officials misled doctors and patients about the risks of one of their drugs, a judge ruled that JNJ must pay more than $1.1 billion in fines. The drug was an antipsychotic medication called Risperdal. The jury had concluded that J&J’s marketing of this particular drug violated both Medicare fraud laws and Arkansas’s deceptive trade practices statutes.

The judge in the case, The Honorable Tim Fox of Arkansas, found “J&J and its Janssen unit committed more than 238,000 violations of the state’s Medicaid fraud laws by illegally marketing Risperdal over an almost four-year period starting in 2002.” The Judge sentenced each violation to a $5,000 fine, raising the total to over $1.1 billion.

This judgment is the largest of the three J&J state cases alleging J&J hid Risperdal’s risks and tricked Medicaid regulators into paying more than they should have for the medicine. Eleven state attorneys general have sued J&J to date relating to the Risperdal sales practices.

For more information, please see:
http://www.businessweek.com/news/2012-04-11/jnj-told-to-pay-1-dot-1-billion-penalty-in-arkansas-risperdal-trial

Contact one of our

Experienced Attorneys

If you are aware of any person, corporation or entity that you think may be violating the False Claims Act, securities, commodities, tax, anti-money laundering, or sanctions laws, contact us today.

CONTACT US