For Immediate Release
Media Contact: Bob Cooper
(208) 334-4112

Date: November 4, 2013

Janssen Pharmaceuticals to Pay Idaho $1.3 Million in Medicaid Settlement

(Boise) – Janssen Pharmaceuticals, Inc. (Janssen) will pay the state more than $1.3 million as part of $1.2 billion multistate and federal settlement, Attorney General Lawrence Wasden said. The agreement was signed by the Attorney General's Medicaid Fraud Control Unit and the Division of Medicaid of the Idaho Department of Health and Welfare.

The settlement resolves allegations that, between 1999 and 2005, Janssen unlawfully promoted its atypical antipsychotic drug Risperdal. The lawsuit claimed that Janssen unlawfully offered and paid healthcare professionals and long-term pharmacy providers to promote and prescribe Risperdal. The states alleged that Janssen's actions caused a loss to the state Medicaid programs.

The Idaho Medicaid program is financed mostly by federal funds, so Idaho will receive $1,309,794 with the remainder going to the federal government. $654,897 in restitution will be returned to the Idaho Medicaid program and $654,897 in additional recoveries will be deposited in the state general fund in accordance with federal and state laws.

Some of the allegations included unlawful promotion of Risperdal by Janssen's marketing teams for treating:

  • Elderly dementia patients' behavior;
  • Children for conduct disorders and attention deficit hyperactivity disorders; and
  • Conduct disorders in individuals with mental retardation and developmental disabilities.

Risperdal was approved by the FDA for treatment of adults with schizophrenia in 1993. In 2003, the FDA approved the use of Risperdal for treatment of adults with Bipolar I disorder. In 2007, the Risperdal label was expanded, and its use was approved for the treatment of adolescents aged 13-17 diagnosed with schizophrenia and in children aged 10-17 for the treatment of Bipolar I disorder. At no time during the time period involved in the settlement was Risperdal approved by the FDA for use in children or adolescents.

The Attorney General's Consumer Protection Division reached a $2.8 million settlement in August of 2012 with Janssen for marketing Risperdal for off-label uses.

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