Johnson & Johnson to pay over $2.2 billion to settle DoJ probe

5 November 2013

Global health care giant Johnson & Johnson (NYSE: JNJ) and its subsidiaries (Janssen Pharmaceuticals and Scios) will pay more than $2.2 billion to resolve criminal and civil liability arising from allegations relating to the prescription drugs Risperdal (risperidone), Invega (paliperidone) and Natrecor (nesiritide), the US Department of Justice (DoJ) announced yesterday.

These allegations include promotion for uses not approved as safe and effective by the Food and Drug Administration and payment of kickbacks to physicians and to the nation’s largest long-term care pharmacy provider. The settlement brings to a close around eight years of whistleblowers law suits and and government investigations.

Johnson & Johnson’s shares dipped just 0.8% to $92.65 on the news. The company had indicated that the settlement amount had been "previously accrued," and no further charges to the company's earnings will be recorded in connection with the DoJ settlement.

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