Attorney General Sues New Jersey Company
Attorney General Dustin McDaniel on Tuesday sued a New Jersey-based company and its subsidiaries alleging improper marketing practices.
The lawsuit, filed in Pulaski County Circuit Court, asked that the companies be ordered to repay millions that Arkansas’ Medicaid program paid for what the attorney general contends were unnecessary prescriptions of the drug Risperdal, used to treat bipolar disorder, schizophrenia and autism.
Drug companies named in the lawsuit were Janssen Pharmaceutica Inc., Janssen and their parent company, Johnson & Johnson.
The drug companies “made, and continue to make, orally and in writing, false, misleading or deceptive representations in advertisements, promotions and statements and continue to disseminate, false, misleading or deceptive information to the public, including Arkansas citizens, physicians and the state regarding non-medically necessary uses of Risperdal and the health risks and the benefits associated with Risperdal,” the lawsuit said.
McDaniel alleges the drug was prescribed for uses not approved by the federal Food and Drug Administration.
The suit also accuses the drug companies of not including warning labels on Risperdal bottles about possible side effects, such as diabetes and weight gain.
“Risperdal is the most widely used atypical anti-psychotic in the world,” the lawsuit said. “Crucial to this blockbuster success is aggressive marketing, which consists chiefly of overstating the drug’s efficacy while concealing its life-threatening side effects. As a direct result of marketing efforts, the state has paid millions of dollars for non-medically necessary uses of Risperdal.”
Amber Morley, spokeswoman for Janssen Pharmaceutica in New Brunswick, N.J., said Tuesday the company was aware of the lawsuit but had not reviewed it.
“Janssen has always been committed to the highest ethical standards and responsible behavior,” Morley said, adding the company would vigorously defend itself against the lawsuit.
The drug was first approved by the FDA in 1993 and is used to treat bipolar mania and schizophrenia. In 2006, it became the first FDA-approved medication to treat autism in children and teenagers, Morley said.
The lawsuit does not say how much money the state is seeking, but McDaniel said recently that the state’s Medicaid Program has spent more than $200 million to pay for prescriptions for Risperdal, Zyprexa and Seroquel.
Tuesday’s lawsuit targeted only the makers of Risperdal. McDaniel said lawsuits are also planned against the makers of the other two drugs in question.
In September, McDaniel told the Legislative Council that the firm is one of the most successful law firms in the nation in the area of pharmaceutical litigation.