J&J Ordered To Pay South Carolina $327 Million For "Detestable" Risperdal Marketing
This article was originally published in The Pink Sheet Daily
The award is based on the number of drug samples distributed and Dear Doctor letters issued; South Carolina just filed a similar suit against GlaxoSmithkline over its Avandia marketing.
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Argues that Arkansas Medicaid spent less than $10 million on Risperdal, but the fine imposed by a state judge for deceptive marketing practices would exceed $1.2 billion.
In the midst of a trial, Johnson & Johnson agrees to pay $158 million to settle a suit by the state of Texas alleging the company promoted Risperdal off-label to children. Two states previously won jury verdicts over the company’s marketing of the antipsychotic.
First the federal government came knocking at their doors and then state attorneys general followed with claims of health care fraud. Now drug makers are dealing with another nemesis: states that file individual suits instead of joining multistate settlements.