Federal Gov’t Recovers $2.3 Billion in 2013 Risperdal Settlement and other U.S. Healthcare Fraud Schemes
The federal government has recovered more than $2.3 billion over the past year from alleged healthcare fraud schemes, including one that involved Johnson & Johnson’s marketing of a drug named in Risperdal lawsuits.
According to a November 20th report from ModernHealthCare.com, the U.S. Department of Justice (DOJ) reported a total recovery of $2.6 million a year earlier. Although the 2014 amount was slightly less in comparison, this was still the fifth year in a row that the federal government collected more than $2 billion from fraud against Medicare, Medicaid and Tricare. The DOJ partially attributes this victory to The Health Care Fraud Prevention and Enforcement Action Team, which was launched in 2009. Most of these recoveries were made partially because of whistle-blower claims, reaping a total of $435 million from 700 cases.
The 2014 total was largely owed to the Johnson & Johnson settlement of claims over Invega, Natrecor and Risperdal, an antipsychotic prescribed to adults and adolescents with schizophrenia and bipolar disorder, among other conditions. The agreement was reached in November 2013 between the federal government, Johnson and Johnson & its subsidiary, Janssen Pharmaceuticals, for $1.1 billion, according to the Modern Health Care. Among other things, the companies were accused of marketing the drugs for uses that fell outside the U.S. Food and Drug Administration (FDA)’s approved list.
J&J Fails to Admit Fault in Risperdal Settlement
In its decision to resolve claims that largely involved Risperdal, Johnson & Johnson admitted no wrongdoing in the marketing of this and other medications. The “settlement of the civil allegations is not an admission of any liability or wrongdoing, and the company expressly denies the government’s civil allegations,” the company said at the time.
In the end, Janssen pled guilty to a single misdemeanor violation of the Food, Drug and Cosmetic Act for past promotional practices of Risperdal.
Aside from federal claims against the antipsychotic drug manufacturers, more than 1,100 lawsuits have now been filed in a consolidated litigation established in the Philadelphia Court of Common Pleas. Lawsuits in the Pennsylvania state court allege Risperdal gynecomastia, a condition referring to male breast development, and other complications stemming from its use. These lawsuits accuse Johnson & Johnson and Janssen of failing to adequately warn about side effects of the medication.
Consider a Risperdal Lawsuit
Call an attorney for more about Risperdal lawsuits at (877) 779-1414.