Johnson & Johnson has reached a settlement of more than $2 billion to resolve claims it marketed drugs for unapproved uses and gave kickbacks to doctors and nursing homes to promote the drugs.
Nebraska will receive $9.2 million from the settlement.
The Nebraska Attorney General’s office reports the settlement involves Johnson & Johnson and its subsidiary, Janssen Pharmaceuticals to resolve allegations on the unlawful marketing of atypical antipsychotic drugs, Risperdal and Invega.
The money will reimburse the Nebraska Medicaid program.
“Drug manufacturers must be held accountable for improper marketing of their products,” said Attorney General Jon Bruning in a written statement released by his office. “This settlement helps to ensure protocol will be followed in the future.”
Nebraska contended the companies promoted the drugs for uses not included on their labels as well as misled consumers about their safety and efficacy. In addition, the Attorney General’s office says the companies provided kickbacks to promote Risperdal use among children, adolescents and the elderly without FDA approval.
The conduct of the manufacturers caused fraudulent claims to be made against the Medicaid program.
Future marketing and sales practices will be monitored by federal health officials.