Johnson & Johnson And Subsidiaries Settle Multijurisdictional Criminal And Civil Investigations For $2.2 Billion

On November 4, 2013, the U.S. Department of Justice announced that it had reached a US$2.2 billion global settlement with Johnson & Johnson (J&J) and its subsidiaries, Janssen Pharmaceuticals Inc., and Scios, Inc., in connection with a wide-reaching criminal and civil investigation into the alleged off-label promotion of the drugs Risperdal®, Invega®, and Natrecor®. The global settlement also resolved allegations that J&J made certain kickback payments to healthcare providers, as well as Omnicare, the nation's largest long term care pharmacy provider. This global resolution is the third largest health care fraud settlement in U.S. history and includes criminal fines and forfeiture totaling US$485 million and civil settlements with the federal government and states totaling US$1.72 billion. The global settlement does not resolve suits brought by attorneys general in Arkansas, Louisiana and South Carolina, where J&J has appealed or has said it will appeal judgments relating to Risperdal sales. This advisory provides a summary of the J&J settlement and its implications for industry.