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Johnson and Johnson Settles Texas Qui Tam Action

Johnson and Johnson (“J&J”) has agreed to settle a Texas qui tam lawsuit brought by whistleblower Allen Jones for $158 million. The settlement ended the trial which had begun earlier this month.

The qui tam complaint filed in 2004 alleged that J&J used false marketing practices in order to influence Medicaid officials to spend millions of dollars on the drug Risperdal. According to the complaint, Risperdal was promoted as superior to other antipsychotic drugs, J&J downplayed its side effects, and promoted its use by children and the elderly, when it had not been approved by the Food and Drug Administration for such uses.

The complaint further alleged that Medicaid, and in turn taxpayers, paid millions of dollars in reimbursements for prescriptions of Risperdal for unapproved uses. Risperdal is approved to treat schizophrenia and mood disorders associated with autism.

The $158 million settlement will be split between the whistleblower, the State of Texas and the federal government. It is the largest Medicaid fraud settlement in Texas history.

If you have any firsthand knowledge, information, or evidence related to any federal, state, county or city government fraud, you should speak with an experienced qui tam lawyer who can help you understand your legal rights and help you obtain the compensation you deserve.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.