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JOHNSON & JOHNSON FRAUD CASE
Transcript of JOHNSON & JOHNSON FRAUD CASE
Case Details (2012 / 2013)
2012-2014 FRAUD CASES
・$123,600 sales per second
$188 billion dollar
・Net income: $9.7 billion (2011)
・Revenue: $65.03 billion (2011)
In 2012, Johnson & Johnson and subsidiary company Janssen were fined
in fines by an Arkansas judge for marketing that "violated
Medicare fraud laws
deceptive trade practice statutes
In November of 2013, the U.S. Department of Justice ordered J&J to pay more than
for allegations that include
to doctors and pharmacists.
a subsidiary of J&J
Arkansas Court Reversal (2014)
However, the 1.2 billion dollar on March 20th, 2014 the states
decision was reversed
by the Arkansas Supreme Court
relied on the wrong law
to sue Johnson & Johnson, using a law covering healthcare facilities rather than drug companies.
1. J&J marketed the medicine
” for “unapproved uses
, including various symptoms in children and the elderly,” despite being
warned by the government to stop
2. J&J was accused of
. Weight gain, increased likelihood of diabetes, and increased risk of stroke in the elderly are all
possible adverse side effects
3. J&J claimed Risperdal was a
and worth its hefty price tag, when in reality
it was not better
than the cheaper generic alternatives.
"a long-term mental disorder of a type involving a breakdown in the relation between thought, emotion, and behaviour, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation."
Risperidone (Risperdal) is an antipsychotic drug mainly used to treat schizophrenia (including adolescent schizophrenia), schizoaffective disorder, the mixed and manic states of bipolar disorder, and irritability in people with autism, manufactured primarily by the pharmaceutical company Janssen.
J&J v State of Arkansas
This is “a big win for Arkansas,” said Arkansas Attorney General Dustin McDaniel. “These two companies [Johnson and Johnson and subsidiary Janssen]
put profits before people
, and they are rightfully being held responsible for their actions.” (2012)
In a statement, Dustin McDaniel, Arkansas’s attorney general, said he believed the State Legislature gave his office the authority to pursue penalties against companies like Johnson & Johnson. “I am disappointed that
the court viewed the law differently,
” he said. (2014 reversal)
SO WHAT DOES THIS HAVE TO DO WITH
UNITED STATES OF AMERICA
JANSSEN PHARMACEUTICAL, INC
JOHNSON & JOHNSON, INC.
STATE OF ARKANSAS
Janssen Pharmaceuticals v United States of America
“When pharmaceutical companies interfere with the FDA’s mission of ensuring that drugs are safe and effective for the American public, they undermine the doctor-patient relationship and
put the health and safety of patients at risk
“Today’s settlement demonstrates the government’s continued focus on pharmaceutical companies that put profits ahead of the public’s health. The FDA will continue to devote resources to criminal investigations targeting pharmaceutical companies that
disregard the drug approval process
promote drugs for uses that have not been proven to be safe and effective