Delaware to Receive Part of Settlement Resolving Fraud Allegations

Nov 04, 2013 -- 8:54pm

Delaware will receive $2-million from Johnson & Johnson as part of a national settlement that will resolve allegations that the pharmaceutical company fraudulently marketed two anti-psychotic drugs.  The AG’s Medicaid Fraud Control Unit secured $943,821 in civil restitution and fines for the Delaware Medicaid & Medical Assistance program.  The litigation has been ongoing since 2008.  Nationally Johnson & Johnson will pay state and federal governments $1.2-billion over charges that Risperdal and Invega were promoted and marketed for uses not approved by the FDA and for uses not medically indicated. 

Additionally – legislation approved by the Delaware General Assembly will bring Delaware a 10% bonus in its share of future settlements in similar cases under the Delaware False Claims & Reporting Act which is expected to bring hundreds of thousands of dollars in recoveries for Delaware and the Delaware Medicaid & Medical Assistance program.

In the same case - Maryland will receive over $20-million  from the $1.2-billion settlement. 

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