Hodgson Russ Helps Clients in Largest-Ever False Claims Act Settlement in Risperdal Lawsuits Against Johnson & Johnson

The Justice Department announced that Johnson & Johnson will pay $1.273 billion to the federal government and most states to settle a civil False Claims Act investigation into its off-label marketing of its antipsychotic drug Risperdal. J&J will settle a criminal investigation into the matter for an additional $800 million.

Two of the J&J whistleblowers are represented by a Hodgson Russ team led by Daniel C. Oliverio. Other team members were Joseph V. Sedita and Robert J. Fluskey, Jr.

Risperdal, once J&J’s best-selling drug, was approved by the FDA in 1993 for psychiatric disorders including schizophrenia. According to documents filed with the court, the company also sought to sell Risperdal for unapproved uses that included bi-polar disorder, dementia, and mood and anxiety disorders, among others.

After the local case against J&J was filed in Western New York in 2004 for its off-label marketing of Risperdal, the federal government consolidated this case in Philadelphia with four other similar cases related to Risperdal marketing. In False Claims Act cases like this one, whistleblowers are entitled to a share of the proceeds; the two whistleblowers represented by Hodgson Russ will share in 15 percent of the settlement awards.