J&J Risperdal Settlement Snag Could Signal DOJ Deal Stance

A reported snag in settlement talks between federal prosecutors and Johnson & Johnson (J&J) over off-label marketing could signal the government wants to standardize its approach to prosecuting such allegations.

The parties will most likely reach a new settlement agreement following reports that the Justice Department wants more money than the roughly $1 billion tentative settlement reached by the U.S. Attorney’s Office in Philadelphia, according to an industry attorney following the case.

This may be because the government wants to ensure it reaches consistent settlements when prosecuting similar allegations, according to a second industry attorney and law professor, James O’Reilly. Justice reached a $1.42 billion settlement with Eli Lilly in 2009 to settle similar allegations over its marketing of Zyprexa (olanzapine).

Other manufacturers have been hit hard too, and there’s more where that came from for companies that aren’t prepared.

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