Arkansas Judge Imposes Billion-Dollar Fine on Pharmaceutical Company
By: KARK 4 News, Little Rock, AR
Updated: April 11, 2012
An Arkansas judge has imposed a $1.2-billion fine on a pharmaceutical company that is a subsidiary of healthcare products giant Johnson & Johnson.
Pulaski County Circuit Judge Timothy Fox fined Janssen Pharmeceutica $5,000 per offense for 238,874 prescriptions paid for by the state's Medicaid program. The total amounts to $1,194,370,000.
His action followed a jury's verdict that the company committed Medicaid fraud.
The panel also found that the company engaged in deceptive trade practices by not disclosing or minimizing possibly dangerous side effects of its anti-psychotic medication Risperdal.
In that part of the case, Judge Fox fined the company $2,500 per offense for 4,569 prescriptions and a total of $11,425,500.
The company is expected to file an appeal of the judge's action. The lawsuit dates back to 2007.
Pulaski County Circuit Judge Timothy Fox fined Janssen Pharmeceutica $5,000 per offense for 238,874 prescriptions paid for by the state's Medicaid program. The total amounts to $1,194,370,000.
His action followed a jury's verdict that the company committed Medicaid fraud.
The panel also found that the company engaged in deceptive trade practices by not disclosing or minimizing possibly dangerous side effects of its anti-psychotic medication Risperdal.
In that part of the case, Judge Fox fined the company $2,500 per offense for 4,569 prescriptions and a total of $11,425,500.
The company is expected to file an appeal of the judge's action. The lawsuit dates back to 2007.
