March 20, 2014 — The Arkansas Supreme Court has tossed a $1.2 billion judgement against Johnson & Johnson for illegally marketing Risperdal (risperidone), according to the Associated Press.
Risperdal, an antipsychotic drug made by J&J’s Janssen Pharmaceutical unit, has been linked to an increased risk of strokes and death in elderly patients with dementia. In children, Risperdal is associated with medically serious weight gain, type-2 diabetes, and the development of male breasts (gynecomastia).
Arkansas Attorney General Dustin McDaniel sued the drug-makers for defrauding the state Medicaid program by promoting Risperdal for “off-label” use and failing to warn about its side effects.
The original lawsuit sought $5,000 in damages for each of nearly 600,000 prescriptions reimbursed by Medicaid over 13 years. Lawyers successfully reduced that to a 3.5-year period, for a total of $1.2 billion.
The Arkansas Supreme Court threw out the $1.2 billion judgement after determining that that the law only applies to healthcare facilities — not pharmaceutical companies. The court also threw out over $100 million in attorneys’ fees for the state.
J&J has also successfully overturned a $258 million award in Louisiana. A $327 million penalty in South Carolina is being appealed. Last November, J&J agreed to pay $2.2 billion to the Justice Department to resolve civil and criminal allegations involving illegal Risperdal marketing.
The Schmidt Firm, PLLC has been recognized as one of the nation’s leading plaintiffs' law firms and handles cases in all 50 states. We are very proud of our legal achievements, but equally self-respecting of our firm's reputation for providing personal attention to each and every client we represent.
