Louisiana’s 3rd Circuit Court of Appeals has upheld a $257.7 million jury verdict in a lawsuit brought by Attorney General Buddy Caldwell on behalf of the State of Louisiana against Janssen Pharmaceutical and Johnson & Johnson for defrauding the state’s Medicaid program. Louisiana sued Johnson & Johnson for serious misrepresentations regarding the drug Risperdal’s link to diabetes in order to obtain funds from Louisiana’s Medicaid program. In 2010, a jury in St. Landry Parish ordered Johnson & Johnson to pay $257.7 million to Louisiana. Attorney General Caldwell had this to say:
The appeals court ruling serves as a powerful reminder that a drug company’s misleading safety claims will not be tolerated in Louisiana. The Attorney General’s Office will continue to move aggressively against those who commit Medicaid fraud.
The jury unanimously concluded that the pharmaceutical companies had violated the Louisiana Medical Assistance Programs Integrity Law (MAPIL) with an aggressive marketing campaign. The Appeals Court found that the jury had sufficient evidence to find that the pharmaceutical company had “violated” the law, and affirmed the lower court decision. This was a very important victory for the state. Attorney General Caldwell is to be commended for his strong stand against Medicaid fraud in his state.
Source: Insurance Journal
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