Johnson & Johnson Will Pay More than $2 Billion to Settle Criminal and Civil Allegations

Years after the allegations surfaced, Johnson & Johnson has decided to end criminal and civil investigations into kickbacks and misbranding of prescription drugs by paying $2.2 billion. Bernard Lisitza, a former employee of Omnicare, Inc. brought forth the allegations that the company marketed Risperdal and other medications for off-label use and provided kickbacks to Omnicare.

Between 1999 and 2005 Johnson &t Johnson and Janssen Pharmaceuticals promoted Risperdal, a psychotic disorder management drug, for the treatment of bi-polar disorder, dementia, and mood and anxiety disorders particularly among children and the disabled. It was also alleged that Invega, an antipsychotic drug, and heart medication Natrecor were also improperly marketed.

Johnson & Johnson will pay $485 million in criminal fines and an additional $1.72 billion in civil settlements with the government and states affected. Janssen agreed to plead guilty on a misdemeanor to violating drug marketing laws and will pay $400 million in fines.

The settlement is the third largest pharmaceutical settlement in U.S history. Just a few years ago Pfizer Inc. paid $2.3 million for poor marketing practices and GlaxoSmithKline paid $3 billion for criminal charge resolutions regarding depression drug Wellbrutin.

According to the government Janssen had been previously warned about marketing Risperdal as safe knowing that it was misleading. Janssen unfortunately chose to not heed that advice and also failed to publish studies to confirm the dangers of Risperdal. Furthermore, the company created an “ElderCare sales force” which emphasized using Risperdal to treat seniors suffering from depression, hostility, and other troubling symptoms. Those who treated children such as child psychiatrists were also marketed to although it was known that Risperdal increased the risk of elevated hormones in children.

Along with paying more than $2 billion Johnson & Johnson will also have to abide by a five-year integrity agreement that will force the company to be more transparent in their drug research, payments to physicians, and publication notices.

Lisitza who blew the whistle on the company’s immoral practices is eligible to receive a percentage of the monies recovered under Qui Tam laws; it believed that he will receive more than $27 million.