Johnson & Johnson agrees to a $2.2 billion settlement over false advertising claims

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Johnson & Johnson has been charged with marketing drugs for unapproved purposes and making false claims about certain drugs. Attorney General Eric Holder also said that the company and two subsidiaries “lined their pockets at the expense of American taxpayers, patients and the private insurance industry.” The specific drugs involved in the charges are Risperdal and Invega, used to treat schizophrenia, and Natrecor, used to treat patients with heart failure.

Johnson & Johnson had a similar issue with Riperdal back in 2011, and had to pay the state of Arkansas $1.2 billion in fines because of false claims about the drug. On Monday, the company made a comment, saying that Risperdal is “safe and effective for its approved indication,” and added that it is “an important treatment option for people with serious mental illness.” While the drug is approved by the FDA for schizophrenia, it has been marketed to doctors as a treatment option for dementia in elderly patients. Johnson & Johnson also did not publicly reveal the fact that the drug could increase the risk of diabetes in patients who take it.

The Justice Department added: “Although consultant pharmacists purported to provide ‘independent’ recommendations based on their clinical judgment, J&J viewed the pharmacists as an ‘extension of [the company’s]sales force.'”




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