financetom
Business
financetom
/
Business
/
Johnson & Johnson unit ordered to pay $1.64 billion in HIV drug marketing case
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Johnson & Johnson unit ordered to pay $1.64 billion in HIV drug marketing case
Mar 28, 2025 10:29 AM

(Reuters) -A federal judge ordered a Johnson & Johnson unit on Friday to pay the U.S. government $1.64 billion after a jury found it liable in a whistleblower lawsuit for illegally promoting the HIV drugs Prezista and Intelence.

U.S. District Judge Zahid Quraishi in Trenton, New Jersey, ordered the drugmaker's Janssen unit to pay $360 million for violating the federal False Claims Act.

He also imposed $1.28 billion in civil fines, or $8,000 for each of 159,574 false claims the jury found were submitted to programs such as Medicare, Medicaid and the AIDS Drug Assistance Program.

Quraishi set aside the jury's $30 million award for violations of various state false claims laws, citing a lack of evidence. The June 13, 2024 verdict followed a six-week trial.

Janssen had sought a new trial, saying the verdict was tainted by a lack of proof and by erroneous jury instructions.

Neither Johnson & Johnson nor Janssen's lawyers immediately responded to requests for comment. Johnson & Johnson is based in New Brunswick, New Jersey.

The plaintiffs Jessica Penelow and Christine Brancaccio, who worked as Janssen sales representatives, accused Janssen of improperly marketing Prezista and Intelence for off-label uses.

This included promoting Prezista as "lipid-neutral," meaning it would not affect cholesterol or triglyceride levels, contrary to its U.S. Food and Drug Administration-approved label.The plaintiffs also said Janssen paid doctors to promote the drugs at dinner and speaker programs, with the payments amounting to kickbacks.

Jurors found Janssen liable for some off-label claims, and no liability for the kickback claims.

In a 35-page decision, Quraishi said there was sufficient evidence that Janssen's off-label marketing was a "substantial factor in causing physicians to submit claims for reimbursement to government payors, and that it was reasonably foreseeable that false claims would result from such conduct."

The $360 million award is three times the $120 million the jury awarded under the federal False Claims Act, which allows triple damages.

False claims statutes let whistleblowers sue on behalf of governments, and share in recoveries.

A lawyer for the plaintiffs had no immediate comment.

The case is U.S. ex rel Penelow et al v Janssen Products LP, U.S. District Court, District of New Jersey, No. 12-07758.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Freeport LNG in Texas to restart one train this week after Hurricane Beryl
Freeport LNG in Texas to restart one train this week after Hurricane Beryl
Jul 15, 2024
NEW YORK/HOUSTON, July 15 (Reuters) - Freeport LNG plans to restart one of three liquefied natural gas trains this week at its Texas facility after the company repairs some damage from Hurricane Beryl, it said on Monday. The plant, in Freeport, Texas, south of Houston, halted operations on July 7 before Beryl hit the coast, causing widespread power outages and...
BRIEF-Google's Kurian Approached Wiz, $23 Bln Deal Could Take A Week To Close -Techcrunch
BRIEF-Google's Kurian Approached Wiz, $23 Bln Deal Could Take A Week To Close -Techcrunch
Jul 15, 2024
July 15 (Reuters) - * GOOGLE'S KURIAN APPROACHED WIZ, $23B DEAL COULD TAKE A WEEK TO CLOSE -TECHCRUNCH Source text : https://tinyurl.com/2bg828xn Further company coverage: ...
Market Chatter: Salesforce Terminates 300 Jobs This Month to Simplify Operations
Market Chatter: Salesforce Terminates 300 Jobs This Month to Simplify Operations
Jul 15, 2024
02:44 PM EDT, 07/15/2024 (MT Newswires) -- Salesforce ( CRM ) terminated around 300 jobs this month to simplify operations, Bloomberg News reported Monday, citing a person with knowledge of the matter. Like any healthy business, we continuously assess whether we have the right structure in place to best serve our customers and fuel growth areas, a Salesforce ( CRM...
Bristol-Myers Squibb Unusual Options Activity For July 15
Bristol-Myers Squibb Unusual Options Activity For July 15
Jul 15, 2024
Financial giants have made a conspicuous bearish move on Bristol-Myers Squibb ( BMY ). Our analysis of options history for Bristol-Myers Squibb ( BMY ) revealed 10 unusual trades. Delving into the details, we found 30% of traders were bullish, while 70% showed bearish tendencies. Out of all the trades we spotted, 3 were puts, with a value of $136,531,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved