The U.S. Federals are seeking about $1 billion from Johnson & Johnson (NYSE:JNJ) to resolve a long running investigation.
The Federal Government has been investigating Johnson & Johnson’s Janssen Pharmaceutica since 2004, and whether or not they have been promoting the drug Risperdal for unapproved uses. it is alleged that J&J used false marketing to persuade the Medicaid officials to give preference to the drug Risperdal and spend millions on it.
On a filling earlier this week the company said that had set aside an unspecified amount of money to potentially settle civil and criminal charges.
Risperdal is used to treat symptoms of schizophrenia which is a mental illness that causes disturbed or unusual thinking, in adults or teenagers of 13 and older. it is also used to tread mania which is abnormal excitement, mood swings, frenzied or mixed episodes which is when mania and depression happen together. In adults and in teenagers and children of 10 years or older it is also used to treat bipolar disorder. it is also used to treat behavior associated with autistic disorder in children and adolescents ages 5-16 ages.
Risperdal is in a class of medication called atypical antipsychotics and it works by changing the activity of certain natural substances in the brain.