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J&J sets aside millions for products liability, kickbacks cases

Bergen County residents who have suffered injuries from faulty DePuy hip replacements or other defective Johnson & Johnson products will likely be interested to learn that J&J recently set aside $600 million in preparation for a potential settlement over kickbacks allegations. This is in addition to the $5.3 billion that has reportedly already been reserved for potential products liability and kickback claims in relation to other J&J medications and medical devices.

According to media reports, J&J is currently accused of making improper payments to a drug distribution company in order to get more of its medications, specifically schizophrenia drugs Risperdal and Invega and respiratory drug Natrecor, into nursing homes in New Jersey and around the country. It is believed that J&J will use that $600 million to finance a $2.2 billion legal settlement.

These allegations are similar to charges filed against Johnson & Johnson in 2007 for paying more than $80 million to orthopedic surgeons in order to promote DePuy artificial hip products. Despite those charges, however, J&J continued to provide kickbacks to doctors, paying $48 million in 2009 and $33 million in 2010. Now, of course, J&J is facing thousands of products liability lawsuits filed by patients who received DePuy artificial hip implants and suffered the harmful side effects.

This is just the latest legal trouble for J&J, which recalled at least 11 different products in 2011, and it will certainly not be the last.

If you or a family member has been injured as a result of a dangerous or defective Johnson & Johnson product, please contact Breslin & Breslin for a free consultation.

Source: The Legal Examiner, "Johnson & Johnson Reserves Additional $600 Million For Settlement," Brett Emison, June 12, 2012

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