The New York attorney general's office today announced a record $181 million settlement with Janssen Pharmaceuticals Inc. and its parent company, Johnson & Johnson. Iowa, one of 36 states that joined in the suit with New York, will receive $3.36 million.
The settlement is to resolve charges of improper marketing and advertising of the anti-psychotic drugs Risperdal and Invega. Attorneys say it's the largest multistate consumer protection-based pharmaceutical settlement in history.
In the complaint, filed today in New York County Supreme Court, New York Attorney General Eric Schneiderman charged that Janssen engaged in deceptive and misleading practices when it marketed the drugs for off-label uses, including the treatment of a host of mental illnesses and dementia.
The complaint also said that Janssen concealed and misrepresented information regarding the side effects of Risperdal therapy, putting patients at risk.
"This landmark settlement holds the companies accountable for practices that put patients in danger, and serves as a warning to other pharmaceutical giants that they must play by one set of rules," Schneiderman said in a release.
According to the consent judgment, the states may use the settlement to pay for consumer protection litigation or education costs, or to fund programs directed at mental illness treatment.