Johnson and Johnson have agreed to pay $2.2 billion in a Risperdal settlement. The settlement stems from accusations against J&J for unlawful acts including kickbacks in the advertisement of the anti-psychotic drug.
Risperdal is a drug that is used to treat conditions such as schizophrenia and bipolar disorder. It is also known to have increased death in elderly people suffering from dementia.
According to The Associated Press, the Johnson and Johnson settlement includes a criminal fine of $400 million.
The case comes to a close after a 2010 claim, where the U.S. Justice Department merged with a whistleblower lawsuit alleging that Johnson and Johnson paid tens of millions of dollars of bribes to a corporation that provided prescription drugs to nursing home patients. The lawsuit stated that Johnson and Johnson used the payments as a means to increase consumer purchases of Risperdal.
Omnicare Inc., a drug dispensing company, had agreed to pay $90 million in 2009 to settle an inquiry into its actions. According to the government Johnson and Johnson participated in unlawful payment to Omnicare between 1999 and 2004, which resulted in annual sales of Risperdal to triple to $280 million during that time period.
This settlement comes not too long after GlaxoSmithKline PLC, agreed to pay $3 billion in unlawful promotion of antidepressants drugs. That settlement also disclosed kickbacks GlaxoSmithKline made to Dr. Drew.
In 2009, Pfizer Inc. also agreed to pay $2.3 billion to end an investigation into its advertising of drugs including the painkiller Bextra, which was taken off the market in 2005.
In addition to the $2.2 billion settlement, Johnson and Johnson faces lawsuits asserting it obscured the side effects of Risperdal. An Arkansas judge ordered the company to pay more than $1.2 billion in April.