Ken Paxton

Tuesday, March 27, 2012

Statement Regarding Final Agreed Judgment in States Medicaid Fraud Case Against Johnson & Johnson

AUSTIN "The largest recovery of taxpayer funds in a Texas civil Medicaid fraud case was approved today by Travis County District Judge John K. Dietz. Under an agreed final judgment entered this morning, Johnson & Johnson and its subsidiaries must pay $158 million to resolve the State's enforcement action charging Janssen Pharmaceutica with defrauding the taxpayer-funded Texas Medicaid program.

"In 2006, the Attorney General's Civil Medicaid Fraud Division charged Johnson & Johnson and its subsidiaries with illegally promoting Risperdal, an antipsychotic drug, for use by pediatric Medicaid patients, despite the fact that the U.S Food and Drug Administration had not approved Risperdal for use by children. Johnson & Johnson simultaneously downplayed the drug's serious side effects.

"Today's settlement includes a $61 million recovery for the State of Texas and its taxpayers, as well as a substantial recovery for the federal government."