Good news for the Johnson & Johnson company because they have become successful to reduce the penalty because of an anti-psychotic drug deceptive marketing. The high court of South Carolina has declared the news of reducing the penalty on Wednesday. Canadian people like to get update on cbc live stream.
According to the reduction amount, Johnson & Johnson Company will need to pay $120 million for the misleading marketing campaign. This rule dictates that more than $200 million penalty has reduced than the actual penalty money. Therefore, this is really great news for the Johnson & Johnson.
Johnson & Johnson have imposed to pay $327 million for the misleading marketing in a trial court in 2011. According to the deceptive marketing campaign, they claimed that their drugs were safer than other competing medications. In fact, they claimed to release the drugs that can compete with the successful drug called Eli Lilly & Co.’s Zyprexa.
According to the order in 2011, the company was imposed to pay $300 for per sample box of the drug. On the other hand, $4000 penalty was on per “Dear Doctor” publication letters. This penalty was ordered against the company because they hide the main concept of the drug. According to the quality of the drug, this has only lower incidence of weight gain and diabetes. But, the marketing campaign showed that they have higher power than other drugs.
The company was charged to the largest drug marketing award in the history of the state of the United States. Moreover, they imposed the largest penalty for this too. South Carolina Unfair Trade Practices Act ordered to issue the penalty for this misconduct.
The company attorneys were very good in this position and gave a good result in the high court. According to the attorney of the company, they highlighted that the drug did not hurt and harm any person. As a result, the company should only may $136 million for the misconduct.
As the recalculation of the original assessment was important, high court reduced the civil penalties to $12 million.
In 1994, Johnson & Johnson introduced the drug market with Risperdal that was used to treat irritability in autism, bipolar disorder and some other kinds of diseases. The company has earned a high amount of money and profit from the drug before revealing the genetic version. The major argument of the attorneys of the company was the drug did not do any hurt and harm to the patients in the 2013 hearing.
$181 million settlement was declared by Janssen and Risperdal was subjected to the court case. However, South Carolina was not a part of the settlement deal as they included 36 states only.
For the latest update, $5.9 million settlement amount was agreed by the Janssen for the case. Moreover, the company would like to pay for the West Virginia and Pennsylvania state cases too. In short, the company has successfully reduced the amount of the penalty and is forcing the court to reduce it with its arguments. Any further case, or hearing for reducing the amount is not announced by the drug company yet.
