Posts Tagged ‘Louisiana’

Jury took little more than three hours to decide antipsychotic drug maker sent out false & misleading information

Saturday, October 23rd, 2010

LawyersandSettlements.com, October 22,2010

by  Brenda Craig

It took the jury a little more than three hours to decide that Ortho-McNeil-Janssen and its parent company Johnson & Johnson had sent out false and misleading information about the anti-psychotic drug Risperdal. The jury set monetary damages at $257 million. “It is one of the largest verdicts in the St. Landry Parish and one of the largest in Louisiana in a case such as this,” says attorney Patrick Morrow who handled the case on behalf of the state.

Don’t Mess with Louisiana’s MAPIL LawThe money will go to the state of Louisiana’s anti-medical fraud and kickback law known as Medical Assistance Program Integrity Law (MAPIL).

The case began six years ago when the FDA ordered a label change for anti-psychotic drugs, including Risperdal, because of the relationship between the drugs and diabetes mellitus.” Janssen agreed to the label change, but at the same time it sent out a letter distinguishing Risperdal from the other drugs,” says Morrow. “They claimed it had a lower risk of diabetes.”

When the FDA discovered this, it sent out a letter warning that Janssen’s letter of November 10, 2003, was false and misleading,” says Morrow.

“Under Louisiana’s Medical Assistance Program Integrity Law (MAPIL), anyone who attempted to defraud or cause false and misleading information to disseminate, you are subject to civil monetary fine,” says Morrow.

According to the evidence, Janssen made some 27,000 phone sales calls to doctors and sent hundreds of “dear doctor letters” downplaying the diabetes link to Risperdal.

Each event, according to the law, could be considered a separate violation with a penalty of zero to $10,000.

“The jury found that there were 35,542 violations and they assessed a penalty of $7,250 for each violation,” says Morrow. “That’s how the $257 million judgment was determined in which Janssen was 90 percent at fault and Johnson and & Johnson was 10 percent at fault.”

Following the jury’s decision, Louisiana’s Attorney General Buddy Caldwell issued a statement saying that “this verdict sends a loud message to those who knowingly try to defraud the system. Those who deceive the state must pay.”

Read the rest of the article here: http://www.lawyersandsettlements.com/articles/15242/interview-patrick-morrow-ryan-bassett.html

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$257 Million Lawsuit Award Against Antipsychotic Drug Maker: One of the largest in the history of the state & expected to set nationwide precedent

Sunday, October 17th, 2010

The Advertiser

Lawsuit Award May Set  Record

by William Johnson

$257 million verdict in a product liability lawsuit.

The award came late Thursday evening in a case involving the drug

Risperdal, a popular antipsychotic administered for the treatment of schizophrenia and bipolar disorder manufactured by Janssen, a division of Ortho-McNeil-Janssen Pharmaceuticals Inc., which is part of Johnson & Johnson.

The jury, which has been hearing the case for almost two months, found the firm misled Louisiana doctors about the possible side effects of the drug.

State Attorney General Buddy Caldwell’s office had argued the New Brunswick, N.J.-based company had violated a state law against misrepresentation and fraud.

Caldwell’s office argued the company sent letters to more than 7,500 doctors and made more than 27,000 phone calls that improperly claimed the drug was safer than other competing medications and minimized Risperdal’s link to diabetes.

The drug has been prescribed to more than

10 million people worldwide and generates about $2.1 billion in annual sales for Janssen.

“This verdict sends a loud message to those who knowingly try to defraud the system. Those who deceive the state must pay,” Caldwell said in a statement Friday.

Michael Heinley, a spokesman for Janssen, said the company is disappointed with the jury’s decision and will appeal.

“We believe the jury was not appropriately instructed on applicable legal standards and that critical and highly relevant evidence was excluded,” Heinley said Friday.

The St. Landry Parish jury’s judgement, which has yet to be formally filed, is expected to set a nationwide precedent.

The drug is also the subject of more than 26 lawsuits throughout the nation that allege it causes strokes, diabetes and other potentially fatal complications in adults.

The state, represented by the Opelousas law firm of Morrow, Morrow, Ryan and Bassett, had originally asked for $440 million in direct damages with other factors that could have pushed the total award to more than $2 billion.

While the state did not get all it asked for, St. Landry Parish Clerk of Courts Charles Jagneaux said the verdict still amounts to the largest judgement ever assessed in the parish and one of the largest in the history of the state.

The Associated Press contributed to this story.

http://www.theadvertiser.com/article/20101016/NEWS01/10160309/1002/Lawsuit-award-may-set-record

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Johnson & Johnson to Pay $257 Million Over Antipsychotic Drug Marketing Tactics

Friday, October 15th, 2010

By Jef Feeley and Margaret Cronin Fisk

Oct. 15 (Bloomberg) — Johnson & Johnson lost a $257.7 million jury verdict in Louisiana for making misleading claims about the safety of the company’s Risperdal antipsychotic drug.

J&J officials defrauded the state’s Medicaid system by wrongfully touting Risperdal as superior to competing antipsychotic drugs and minimizing its links to diabetes, said jurors in state court in Opelousas, Louisiana.

Yesterday’s verdict is the second trial loss in a state lawsuit brought over Risperdal marketing. A West Virginia judge in a non-jury trial last year awarded $3.95 million, finding the company misled doctors about the risks and benefits of Risperdal. New Brunswick, New Jersey-based J&J appealed.

Michael Heinley, a spokesman for J&J’s Ortho-McNeil Janssen Pharmaceuticals unit, said the company is disappointed with the jury’s decision and will appeal.

“We believe the jury was not appropriately instructed on applicable legal standards and that critical and highly relevant evidence was excluded,” he said in an interview.

The jury found 35,542 violations of the state’s Medical Assistance Programs Integrity Law and imposed a penalty of $7,250 for each. The total $257.7 million verdict is the fifth- largest in the U.S. so far in 2010, according to data compiled by Bloomberg.

‘False and Misleading’

“You can’t come into Louisiana and disseminate false and misleading information,” Patrick Morrow, who represented the state, said after the verdict in a phone interview. “I’m sure this matter will be in the appellate courts for years to come. This is the first step.”

The state’s case centered on drug safety claims that J&J and Ortho-McNeil Janssen made in November 2003 correspondence to 700,000 doctors. In those letters, J&J touted Risperdal as safer than competing antipsychotics such as Indianapolis-based Eli Lilly & Co.’s Zyprexa and London-based AstraZeneca Plc’s Seroquel. Risperdal global sales peaked at $4.5 billion in 2007, declining after the company lost patent protection.

The U.S. Food and Drug Administration responded with a warning letter saying J&J made false and misleading claims that minimized the potentially fatal risks of diabetes and overstated the drug’s superiority to rival medicines.

7,604 Letters

Lawyers for the state asked jurors to hold J&J liable for the 7,604 letters it sent to Louisiana doctors and regulators making those claims along with more than 27,542 sales calls in the state made by the drugmaker’s representatives in 2003 and 2004.

The state sought a total of $351 million in damages, including penalties of $10,000 for each fraudulent claim and misrepresentation in violation of the Medical Assistance Programs Integrity Law.

Read the rest of the article here: http://www.businessweek.com/news/2010-10-15/j-j-told-to-pay-257-7-million-over-risperdal-marketing-tactics.html

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