Montana reaches $5.9M settlement in pharmaceutical case

admin » 12 March 2014 » In Legal News, Mass Tort »

HELENA – Montana Attorney General Tim Fox announced Thursday that a $5.9 settlement has been reached in a lawsuit filed against a large pharmaceutical company, and money will be used to pay for a new prescription drug abuse prevention program, mental health services and ongoing consumer protection services.

The Attorney General’s Office filed a lawsuit in 2008 against Janssen Ortho LLC and Janssen Pharmaceuticals, Inc. The lawsuit alleged the company employed illegal, unfair and deceptive practices in the marketing of Risperdal, an antipsychotic drug used to treat certain psychological disorders in adults.

The lawsuit alleged Janssen deceived Montana physicians and consumers when it promoted Risperdal as safe and effective for a variety of conditions, but was aware that research showed dangers associated with its use and hid that research from the public.

Janssen’s own studies of Risperdal demonstrated it had the potential to cause weight gain and diabetes, cerebrovascular complications in the elderly, as well as other severe adverse side effects.

Janssen agreed to settle the lawsuit for $5.9 million last month. The settlement also restricts Janssen from making misleading claims in the promotion of its drugs, and present information about the benefits and risks of its product in promotional materials.

Janssen did not admit wrongdoing through the settlement.

Fox said about $1.5 million of the settlement will be used to bolster the state’s Prescription Drug Abuse Prevention Program. A public education specialist will be hired to create a student education program, look for ways to expand prescription drug drop box locations across the state, and create a public awareness campaign about the dangers of prescription drug addiction.

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