Arkansas Judge Tim Fox found J&J and its subsidiary, Janssen, committed more than 238,000 violations of Arkansas’ Medicaid fraud laws while marketing Risperdal in a roughly four-year time span, beginning in 2002. The judge implemented a fine of $5,000 for each violation. The combined penalty is 11 percent of J&J’s 2011 net income.
A spokesperson for the Janssen unit of J&J said the company is “disappointed with the judge’s decision on the penalties.” The company plans to appeal if its motion for a new trial is denied.
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