Johnson & Johnson to Pay $2B to Settle False Marketing Cases

It promoted a drug beyond its approved uses


johnson johnson corporate 630 300x172 Johnson & Johnson to Pay $2B to Settle False Marketing CasesOn Monday, the U.S. Department of Justice said that it had reached a settlement agreement with Johnson & Johnson (JNJregarding the improper marketing an antipsychotic drug.

The company will pay $2.2 billion to settle civil and criminal claims over the way it promoted Risperdal. The deal includes $485 million in criminal fines and $1.74 billion in civil penalties, USA TODAY notes.

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Federal regulators granted approval for Risperdal to be given to patients suffering schizophrenia. However, a Johnson & Johnson subsidiary promoted the drug for a much broader range of issues in peoples suffering from age-related dementia.

The government said that sales representatives were compensated for marketing the drug beyond its approved application. The subsidiary that marketed the drug for off-label purposes was hit with criminal charges, including misbranding and making “false and misleading statements” about the drug.

Claims regarding two other drugs — Invega and Natrecor — are also covered by the civil settlement.

Shares of Johnson & Johnson fell modestly in Tuesday morning trading.

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