February 4, 2014

Louisiana Supreme Court Strikes Medicaid Fraud Risperdal Verdict: A Narrowing of State AG's Expansive Interpretation

Arnold & Porter Advisory

On Tuesday, January 28, 2014, the Louisiana Supreme Court's ruling in Caldwell ex rel. State v. Janssen Pharmaceutica, Inc., 2012-C-2447, 2012-C-2466 (La. 1/28/14), --- So.3d ---, 2014 WL 341038, reversed a trial court judgment of US$257,679,000 in civil penalties, US$70,000,000 in attorney fees, and US$3,000,200 in costs and expenses, and granted judgment in favor of Defendants Janssen Pharmaceutica, Inc. and its parent company Johnson & Johnson, Inc. This decision has significant implications for lawsuits brought by the Louisiana Attorney General asserting Medicaid fraud claims against pharmaceutical companies under Louisiana's Medical Assistance Programs Integrity Law, La. Rev. Stat. §§ 46:437.1, et. seq., (MAPIL). Additionally, it could influence how similar Medicaid fraud prevention statutes are construed in other states.

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