Johnson & Johnson Settles Texas Medicaid Fraud Suit for $158 million

AUSTIN – Johnson & Johnson reached an agreement Thursday to settle Texas’ Medicaid fraud lawsuit for $158 million, halting a trial that exposed the drug company’s marketing of a powerful antipsychotic for unapproved use in children while downplaying its serious side effects.

The settlement was reached during the second week of trial in which Texas officials and a whistleblower had jointly sued Johnson & Johnson and its subsidiary, Janssen Pharmaceuticals, Inc. for falsely marketing its prescription medication Risperdal to doctors for off-label treatments not approved by the U.S. Food and Drug Administration.