Jury Finds Risperdal Manufacturer Violated Consumer Laws

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Bloomberg News

2011-03-24

Johnson & Johnson (JNJ) unit violated consumer-protection laws by sending South Carolina doctors a misleading letter about the safety and effectiveness of the antipsychotic drug Risperdal®, a jury concluded.

Jurors in state court in Spartanburg, South Carolina, deliberated more than six hours before finding today that J&J’s Ortho-McNeil-Janssen Pharmaceuticals unit engaged in “unfair and deceptive acts” by sending a 2003 letter touting Risperdal® as better and safer than competing drugs to more than 7,000 doctors across the state. A judge will decide later whether the drugmaker should pay $36 million in penalties over the mailings.

“Risperdal® should be a drug of last resort. The adverse event profile is so significant, you don’t want to use it except as a last resort. There are many alternatives to these kinds of drugs. But ‘big pharma’ and the FDA have failed to protect the public” – Stephen Sheller on The American Law Journal television broadcast
Video: Attorney Stephen Sheller quoted on national broadcast media about Risperdal® cases filed by his law firm.

“The verdict they handed down is just and speaks the truth,” John White, a Spartanburg-based lawyer representing the state, said in an interview. Jurors also found that J&J warning label information on Risperdal® was deceptive.

The state’s case centered on drug-safety claims that New Brunswick, New Jersey-based J&J and Janssen made in November 2003 correspondence to about 700,000 doctors across the U.S., including 7,200 in South Carolina.

‘Acted Responsibly’

“We are disappointed,” Greg Panico, a J&J spokesman, said in a statement. “Janssen acted responsibly and believes it did not violate” South Carolina law, he said.

South Carolina officials argued in the case that J&J sent the letter to protect billions of dollars in sales of the antipsychotic drug.

Risperdal’s® global sales peaked at $4.5 billion in 2007 and declined after the company lost patent protection. Risperdal® generated $3.4 billion in sales in 2008, or 5.4 percent of J&J’s total sales, according to company filings. Sales of the drug fell to $527 million last year, J&J said in a January earnings report.

Risperdal Consta®, the long-acting version of the antipsychotic drug, generated $1.5 billion in sales last year for J&J.

The case is the third of about 10 state lawsuits to be considered by jurors over J&J’s Risperdal® marketing campaigns. In June, J&J won dismissal of Pennsylvania’s suit alleging the company hid the drug’s diabetes risk and tricked regulators into paying millions more than they should have for the medicine.

Louisiana Verdict

A Louisiana jury ordered the drugmaker in October to pay $257.7 million in damages to that state for making misleading claims about Risperdal’s® safety. A judge later added $73 million in legal fees to the award.

A West Virginia judge in a 2009 non-jury trial awarded $3.95 million, finding the company misled doctors about the risks and benefits of Risperdal®. The state dropped its Risperdal® claim after J&J won an appeal, company officials said in February.

Under South Carolina’s unfair trade practices law, Janssen can be fined as much as $5,000 for each Risperdal® letter sent to South Carolina doctors. Judge Roger Couch will decide the financial-penalty issue after an April 18th hearing.

“After the judge makes a determination as to damages, we will consider our options,” Panico said in his statement.

The case is State of South Carolina v. Janssen Pharmaceuticals, 2007-CP-4201438, Circuit Court for Spartanburg County, South Carolina (Spartanburg). 

Related Information

Link to Bloomberg story:  http://www.bloomberg.com/news/print/2011-03-22/j-j-s-risperdal-letter-violated-law-south-carolina-jury-finds.html

Sheller Risperdal® Webpage Resources

Risperdal®/Risperidone Webpage Inquiries

Risperdal®/Risperidone General Information

Sheller Risperdal® Resources: Video

Risperdal® Dangerous Side Effects in Children – Media Coverage with Attorney Stephen Sheller: http://www.youtube.com/watch?v=KgsOyBxLRt8

CBS Evening News Store – Risperdal® Side Effects in Children with Attorney Stephen Sheller and client: http://www.youtube.com/watch?v=4-VouCjp_eI

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