New York State is part of a $1.6 billion settlement with other states and the federal government against pharmaceutical giant Johnson & Johnson and its subsidiary, Janssen Pharmaceuticals, Inc.
The settlement resolves both civil and criminal allegations that claim the company promoted the use and sale of Risperdal and Invega for uses that were not approved by the U.S. Food and Drug Administration. The allegations also claimed the company introduced the two drugs into interstate commerce.
As part of the settlement, New York State will receive $138 million to go towards the state Medicaid program.
Out of the $1.2 billion civil settlement, $523 million will go toward state Medicaid programs. The other $750 million is going toward federal health care programs, including the federal Medicaid share.
The investigation claimed that from January 1999 to December 2005, the company marketed Risperdal for off-label uses and made false and misleading statements about the safety of the drug.
It also claims the company paid illegal kickbacks to health care professionals and long-term care pharmacies to promote the drug for uses not approved by the FDA.
They go on further to say from January 2007 through December 2009, the company did the same thing with the drug Invega.
Johnson & Johnson and Janssen have also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services as part of the settlement. The company will be closely monitored in the future for further issues with their marketing and sales practices.