J & J to pay $158 million to settle Texas Medicaid fraud case

Drug maker Johnson & Johnson will pay $158 million to settle a Medicaid fraud lawsuit that accused the company of improperly marketing its Risperdal antipsychotic drug to Texas Medicaid recipients, including children, while downplaying the drug’s health risks, which include an increased risk of stroke and death for elderly dementia patients.

In the lawsuit, J & J subsidiary Janssen Pharmaceuticals was accused of providing state officials kickbacks in exchange for including the drug on an approved list for Medicaid recipients.

State lawyers originally were seeking $579 million in repayment to the Texas Medicaid program plus up to $500 million in penalties. In similar Risperdal lawsuits, Johnson & Johnson was directed to pay $327 million in South Carolina and $257.7 million in Louisiana.