Johnson & Johnson Settles a Texas Whistleblower Lawsuit for $158 Million

03/06/2012 // San Francisco, CA, USA // Whistleblower Law Firm (Press Release) // Jeffrey Keller // (press release)

Texas and a subsidiary of Johnson & Johnson reached a $158 million settlement in a Medicaid fraud lawsuit. The health care company faced a potential $1 billion in penalties and fines if the suit had proceeded through trial. J&J did not admit liability or fault as part of the Texas settlement.

The lawsuit alleged that the health care company committed fraud by making false or misleading statements about the safety, cost, and effectiveness of the anti-psychotic drug Risperdal and that it improperly influenced doctors and officials to advocate for the drug. J&J was alleged to have engaged in illegal marketing practices and to have provided kickbacks to boost Risperdal’s sales. Johnson & Johnson has been sued in other state and federal courts and was recently ordered to pay $327 million in South Carolina and $258 million in Louisiana in similar Risperdal lawsuits.

This qui tam lawsuit was filed by whistleblower Allen Jones, a former employee of the Office of the Inspector General of Pennsylvania. He reported that he uncovered the health care company’s fraudulent actions in Texas while investigating similar claims in Pennsylvania. Texas joined the lawsuit after conducting its own investigation of the fraudulent activity. As the whistleblower in a successful qui tam lawsuit, Mr. Jones will receive a portion of the settlement funds, although the exact amount has not been determined yet.

If you believe someone has committed fraud against the government and you would like to discuss your concerns with a qui tam attorney, contact the whistleblower attorneys at Keller Grover LLP at 866.486.1537 or via email at [email protected]

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