J&J Settles Illegal Marketing Case for $181M

Johnson & Johnson (NYSE:JNJ) has agreed to pay $181 million to settle allegations of improper drug marketing in 36 states.

The claims relate to the company’s promotion of its Invega and Risperdal anti-psychotic medications.

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Attorneys general from a number of states claimed that between 1998 and 2004, Johnson & Johnson marketed the drugs to treat disorders for which they had not been cleared by the Food and Drug Administration (FDA), Bloomberg noted.

In particular, the states claimed that the company promoted Risperdal for dementia, anxiety and Alzheimer’s, and for use with children, though the FDA hadn’t approved it for those conditions, or in younger patients. Indeed, the FDA barred Risperdal’s use for psychotic conditions back in 1993, but has since okay-ed its application for other disorders.

The settlement with the states comes weeks after the consumer products giant agreed to pay up to $2.2 billion to federal regulators to settle claims arising from Medicaid payments for Invega, Risperdal and Natrecor, a heart drug.

Under the terms of its settlement with the government, the company did not concede any wrongdoing.

In addition to actions filed by state and federal regulators, Johnson & Johnson is currently appealing trial awards of $1.8 billion relating to Risperdal marketing lawsuits in several states.

Shares of Johnson & Johnson were flat in Friday mid-day trading.