Arkansas's Supreme Court has thrown out a $1.2 billion verdict against Johnson & Johnson (J&J) over the marketing of the antipsychotic drug Risperdal because the state attorney general improperly sued the company under a law governing healthcare facilities, not drug makers. The overturned award had been the largest Risperdal verdict against the company.
This is the second time this year that a state supreme court has overturned a Risperdal award, raising questions as to whether state laws are equipped to handle off-label drug marketing cases. In January, the Louisiana Supreme Court threw out a $258 million Risperdal award against J&J. And, the South Carolina Supreme Court is currently considering J&J's appeal of a $327 million award.
Federal enforcement efforts have been more successful. In 2013, J&J agreed to plead guilty to a criminal misdemeanor charge and pay more than $2.2 billion to resolve federal and state claims that it illegally marketed Risperdal. In that case, U.S. Department of Justice charges were based on evidence that J&J downplayed the drug’s risks to elderly people and marketed it to children without FDA approval.
[1] Ortho-McNeil-Janssen Pharmaceuticals Inc. v. State of Arkansas, CV 2007-15345 (Arkansas S.Ct., Little Rock).
[2] Feely, J. "J&J Gets $1.2 Billion Arkansas Risperdal Verdict Tossed," Bloomberg News (March 20, 2014).
[3] Thomas, K. "Arkansas Court Reverses $1.2 Billion Judgment Against Johnson & Johnson," The New York Times (March 20, 2014).
[4] Thomas, K. "J&J to Pay $2.2 Billion in Risperdal Settlement," The New York TImes (November 4, 2013).
This is the second time this year that a state supreme court has overturned a Risperdal award, raising questions as to whether state laws are equipped to handle off-label drug marketing cases. In January, the Louisiana Supreme Court threw out a $258 million Risperdal award against J&J. And, the South Carolina Supreme Court is currently considering J&J's appeal of a $327 million award.
Federal enforcement efforts have been more successful. In 2013, J&J agreed to plead guilty to a criminal misdemeanor charge and pay more than $2.2 billion to resolve federal and state claims that it illegally marketed Risperdal. In that case, U.S. Department of Justice charges were based on evidence that J&J downplayed the drug’s risks to elderly people and marketed it to children without FDA approval.
[1] Ortho-McNeil-Janssen Pharmaceuticals Inc. v. State of Arkansas, CV 2007-15345 (Arkansas S.Ct., Little Rock).
[2] Feely, J. "J&J Gets $1.2 Billion Arkansas Risperdal Verdict Tossed," Bloomberg News (March 20, 2014).
[3] Thomas, K. "Arkansas Court Reverses $1.2 Billion Judgment Against Johnson & Johnson," The New York Times (March 20, 2014).
[4] Thomas, K. "J&J to Pay $2.2 Billion in Risperdal Settlement," The New York TImes (November 4, 2013).
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