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The Arkansas Supreme Court denied Attorney General Dustin McDaniel’s request for the high court to reconsider its decision that overturned a $1.2 billion Risperdal settlement against Johnson & Johnson for improperly marketing the antipsychotic drug Risperdal.
Chief Justice Jim Hannah and Justices Donald Corbin and Paul Danielson dissented, as they did in the earlier decision. The high court earlier said that the state misapplied the Medicaid fraud law against Johnson & Johnson and its subsidiary Janssen Pharmaceutical Inc. over the marketing of Risperdal. They also took note of a judge’s error of incorrectly determining the amount at $1.2 billion in fines for the Risperdal lawsuit settlement.
The high court did not elaborate on why the request was denied but McDaniel said he would re-litigate the Deceptive Trade Practices claim and seek the maximum penalties allowed by law in another Risperdal lawsuit.
“I am extremely disappointed that the court decided to deny the petition in this case, considering the basis for the court’s original decision was never addressed until oral argument. That parted with longstanding precedent, and it was impossible for either party to adequately respond to the concerns raised at that time,” he said.
McDaniel added that it creates imbalance and uncertainty for the business community and all laws if the court can simply undo the work of the Code Revision Commission spontaneously, at any time.
“This case was thoroughly reviewed by the Supreme Court in its original decision, and we are pleased the court has decided not to grant a rehearing of the matter,” Janssen Pharmaceuticals said in a statement.
This is not the first Risperdal class action lawsuit incident that Janssen Pharmaceuticals had been entangled in over alleged deceptive marketing practices. In 2011, a South Carolina court ruled that the company deceptively marketed Risperdal to doctors and consumers across the nation. Janssen filed an appeal after it was ordered to pay $327 million in fines.
The U.S. Food and Drug Administration approved Risperdal in 2002 for the treatment of schizophrenia. However, Janssen allegedly began to market the drug for the treatment of agitation associated with dementia in the elderly. Though physicians may prescribe drugs of their choice to treat patients, companies cannot market them for unapproved uses. Complaints from consumers piled up, prompting the FDA to investigate the risks associated with Risperdal.
In 2006, the drug was approved for use in children to treat autism and bipolar disorder. Hundreds of Risperdal lawsuits have since been filed with allegations that victims who took Risperdal suffered unintended male breast growth known as gynecomastia.
The Risperdal lawsuit is Ortho-McNeil-Janssen Pharmaceuticals Inc. v. State of Arkansas, CV 2007-15345, in the Arkansas Supreme Court.
In general, Risperdal lawsuits are filed individually by each plaintiff and are not class actions.
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