A three-sentence order signed Thursday by Pulaski County Circuit Judge Tim Fox ends almost eight years of state litigation against one of the world's largest drug companies over one of the world's most popular medications.
The lawsuit against Johnson & Johnson by the Arkansas attorney general's office had resulted in a $1.2 billion fine against the company for its marketing of the antipsychotic Risperdal, but the Arkansas Supreme Court last year overturned the 2012 jury verdict that would have subjected the company to that penalty.
Now, Arkansas is due to collect $7.5 million -- $5.5 million after the lawyers hired to represent Arkansas are paid -- from Johnson & Johnson in exchange for the state dropping its lawsuit.
"Upon joint request of the plaintiff and defendants, it appears to the court that this case has been resolved," the order states, later adding that "the plaintiff's complaint and all amendments thereto that have been asserted against the defendants should be and are hereby dismissed."
It also states, "All claims asserted and all claims that could have been asserted regarding the prescription drug Risperdal prior to the execution and filing of this agreed order are forever barred. Each party is to bear its own costs, expenses and attorneys' fees."
The lawsuit claimed the company's Janssen Pharmaceutical division wrongly downplayed Risperdal's links to diabetes and potential to cause other side effects, such as sexual malformation in children.
The company denies wrongdoing, and the 10-page agreement with the state specifically states that the settlement payment is not an admission of wrongdoing and should not be interpreted as such.
The agreement releasing Johnson & Johnson from the lawsuit was signed Wednesday by Joe Cordi, senior assistant Arkansas attorney general, and on Tuesday by Lisbeth Warren, the N.J. company's assistant general counsel. The agreement to settle the case was signed on May 1.
A spokesman for the attorney general said she is happy to resolve the case, filed in November 2007.
"Attorney General [Leslie] Rutledge is glad to have this matter resolved and the litigation brought to a close," Judd Deere said Thursday.
Deere said the attorney general has not decided how the funds will be used.
Her predecessor, Dustin McDaniel, initiated the litigation against Johnson & Johnson, AstraZeneca and Eli Lilly & Co. over the marketing of the companies' most popular mental-health medications, AstraZeneca's Seroquel and Lilly's Zyprexa, both competitors for Risperdal. All of the lawsuits have been settled now, bringing in a total of $28 million to the state.
The $22.5 million from Eli Lilly & Co. and AstraZeneca Pharmaceuticals settlements was used to pay $20 million to Medicaid and $2.4 million into an attorney general consumer protection fund.
Metro on 05/22/2015