Court upholds $257.7 million jury verdict in favor of State of Louisiana

Court upholds $257.7 million jury verdict in favor of State of Louisiana

POSTED: Wednesday, September 5, 2012 - 6:00am

UPDATED: Wednesday, September 5, 2012 - 8:34am

Louisiana’s 3rd Circuit Court of Appeal has upheld a $257.7 million jury verdict in a lawsuit brought by Attorney General Buddy Caldwell against Janssen Pharmaceutical and Johnson & Johnson for defrauding the state’s Medicaid program.

Caldwell, who successfully obtained the 2010 St. Landry Parish jury verdict that ordered Johnson & Johnson to pay $257.7 million to Louisiana, said the court’s decision is a major victory for the state.

“The appeals court ruling serves as a powerful reminder that a drug company’s misleading safety claims will not be tolerated in Louisiana,” said Attorney General Caldwell. “The Attorney General’s Office will continue to move aggressively against those who commit Medicaid fraud.”

“We will not tolerate fraud in the state’s Medicaid program,” said Department of Health and Hospitals Secretary Bruce D. Greenstein. “Individuals who commit fraud are stealing public resources from those who truly need them, and we will work aggressively to maintain the integrity of our program.”

Caldwell sued Johnson & Johnson for serious misrepresentations regarding Risperdal’s link to diabetes in order to obtain funds from Louisiana’s Medicaid program.
  

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