Janssen to pay $181 million in Risperdal settlement

US health care giant Johnson & Johnson’s (NYSE: JNJ) Janssen Pharmaceuticals yesterday announced a settlement and consent decree with 36 states and the District of Columbia regarding previously disclosed allegations related to inappropriate promotional and marketing practices for its atypical antipsychotic drug Risperdal (risperidone).

The company will pay around $181 million, an amount which has been previously accrued, as part of a consent decree to resolve state consumer protection law claims in the 36 states and DC related to this matter. A designated portion of the total amount will be paid to each state participating in the settlement.

The settlement is not an admission of wrongdoing or violation of any law or regulation, says Janssen. The company agreed to the settlement to resolve the concerns of the attorneys general under state consumer protection laws and to avoid unnecessary expense and a prolonged legal process. All parties have acknowledged that the payment is not a fine or penalty.