Allen’s pleased…

Posted on Thursday 19 January 2012

The settlement was $158 M. Lots of people are posting disappointment in that number, "cost of doing business." I just talked to Allen Jones and he didn’t sound one bit unhappy. He’s finally free from his 10 year black-out on being able to speak about the case publicly. And $158 M is a lot of money. I’m personally glad it’s over for him. I just hope the documents we saw in that courtroom will make it to the public archives for everyone to see. Look for an interview with Allen soon. He’s free at last.

I’m an adult psychiatrist, and here-to-for I’ve been interested in this case because of the obvious intrusion of the pharmaceutical industry into my specialty in general and academic psychiatry in the specific. But sitting in that courtroom, I realized that I haven’t focused enough on how much over-medicating children was a part of this whole issue with Risperidal. I knew about "Bierdermania," the inappropriate diagnosis of Bipolar Disorder in kids, but I hadn’t fully realized how strongly Janssen marketed Risperdal in the Child and Adolescent markets in general. Talking to Nanci Wilson in Austin [an investigative reporter who has followed this case for seven years], I heard about the big push in Foster Kids. And listening to the drug rep’s testimony, it was clear that Janssen was hell bent on building the Risperdal market in kids of all ages.

After a "recovery nap," I’m going to try to put the testimony I heard in Austin out there in more detail, but for now, I can say that their medication of kids was so much bigger than just their support of Dr. Biederman.
Johnson & Johnson settles Texas lawsuit for $158M
Associated Press
By JIM VERTUNO
01/19/2012 12:59 PM

A lawsuit in which Texas accused Johnson & Johnson of plundering the state Medicaid program by overstating the safety of an expensive anti-psychotic drug and improperly influencing officials and doctors to push the medication has been settled for $158 million, a subsidiary of the health care giant and state officials announced Thursday. Texas had been seeking up to $1 billion from the drug maker.

Janssen Pharmaceuticals Inc., one of the J&J subsidiaries that had been sued, said in a statement it will pay $158 million in full resolution of all claims in Texas. The settlement represents a resolution to claims brought by Texas for alleged Medicaid overpayment during the years 1994-2008, the company said.

"Janssen is committed to ethical business practices, and has policies in place to ensure its products are only promoted for their FDA-approved indications," the company statement said. Tom Kelley, a spokesman for the office of Texas Attorney General Greg Abbott, which was leading the case on behalf of the state, confirmed the settlement but declined further comment…

A whistle-blower filed the lawsuit, then Texas joined it. The lawsuit is one of dozens of pending state and federal cases alleging illegal marketing practices and kickbacks in an effort to boost Risperdal over competing drugs. Risperdal is a pill for schizophrenia and bipolar disorder.

Lawyers for Abbott’s office and whistle-blower Allen Jones accused Johnson & Johnson and some of its subsidiaries of committing fraud against Medicaid, the joint state-federal health care program for the poor, by making false or misleading statements about Risperdal and its safety, cost and effectiveness compared to other drugs in the 1990s…

"Janssen ran amok," Jones said after the settlement was announced. "They trashed the Johnson and Johnson credo, and they misused Texas and I believe well-meaning officials to further their marketing. They subverted science and they influenced others to betray the people they were supposed to be taking care of. To me, that is reprehensible."

At the start of the trial, lawyers for the New Brunswick, N.J.-based health care giant had insisted the company did nothing improper in marketing the drug. The lawsuit was originally filed in 2004 by Jones, a former employee of the Office of Inspector General in Pennsylvania, who said he learned of Johnson & Johnson’s actions in Texas while investigating similar claims in his home state. Texas joined the case in 2006. As the whistle-blower, Jones will received a portion of the settlement but he said Thursday he doesn’t know yet how much it will be.

When asked if the $158 million settlement was enough to punish the drug companies he accused of wrongdoing, Jones said, "They’ll feel it, they’ll feel it, but I really believe that  this industry will not change its behavior until executives are prosecuted, until executives actually go to jail for the frauds they perpetrate"…

  1.  
    January 19, 2012 | 2:06 PM
     

    Here’s an example of how the settlement brings pain and anguish back for me as a parent of a child who is a “product” of the Biederman/pharma psychiatric crime against humanity:

    https://twitter.com/#!/soulflsepulcher/status/160060590616887298

    I am one who does say it is a crime to consider biz as usual part of this process. I know the trial wasn’t about the kids or the people being given justice, all the same, I had a glimmer of hope that this trial would end with a JURY verdict, not a settlement.

    I do thank Allen Jones, Bruce Perry and Joseph Glenmullen for their testimonies.

    It is important to never forget the children harmed in Texas and all over the country, at the expense of their health, J&J Janssen made a profit and for these children, justice remains to be served.

  2.  
    January 19, 2012 | 2:16 PM
     

    and THANK YOU, Mickey for traveling, attending, and reporting on this trial, it was amazing that you did that, and I appreciate it very much.

  3.  
    Stan
    January 19, 2012 | 2:33 PM
     

    “I just talked to Allen Jones and he didn’t sound one bit unhappy” &
    “When asked if the $158 million settlement was enough to punish the drug companies he accused of wrongdoing, Jones said, “They’ll feel it, they’ll feel it, but I really believe that this industry will not change its behavior until executives are prosecuted, until executives actually go to jail for the frauds the perpetrate”

    …

    Texas didn’t bring criminal charges correct? Why? I’m sorry Allen, but you can’t be serious that J&J really felt this settlement, and your happy with the outcome? OK maybe happy that’s it’s finally over……

    but you know the numbers, the inside story…what’s Risperdal making for J&J this year alone even off patent…it’s not just executives that need to go to jail if any change is going to happen…there are KOL’s, corrupt politicians & government representatives, FDA personal, and a whole host of others that were/are active participants in these crimes that have to tumble as well…..we need to have verdicts…we need to make this so financially painful for corporations that they face the wrath of stock holders & Yes! BE FORCED GO OUT OF BUSINESS…

    don’t get me wrong…I applaud your coming forward to whistle blow, the sacrifice, but I’m just not buying the line “J&J is going to feel this” in any significant way…you now get to pass go…collect ??? dollars, and move on with a fairly significant pay day….but that’s not so easy for the victims…they will get to be reminded each and every day for the rest of their damaged lives without restitution or resolution…oh yeah, and those innocent lives lost…better not mention them…we’ll call them simply corporate collateral damage…

    I’ll be very interested to hear what Allen Jones has to say when all the smoke clears and news hoopla has passed…

    Just calling it as I see it…something smells really rotten here with this deal…some of us will keep sounding off & digging until we get something called the whole truth, & nothing but the truth; so help us God….

  4.  
    SG
    January 19, 2012 | 6:14 PM
     

    I have to agree with Stan here. This trial turned out to be a real disappointment. ONLY when the CEOs and KOLs go to prison will things truly change. And I mean a REAL prison — I’m talking a soap-on-a-rope, shanked-in-the-exercise-yard prison, not some minimum security club med with free Showtime and HBO.

    Damn, these Pharma guys are starting to look as untouchable as the too-big-to-fail bank CEOs. God help us!

  5.  
    Mark p.s.2
    January 19, 2012 | 7:03 PM
     

    Who watches the watcher? The state wants children drugged into tranquility because it is easier than doing the work of parenting. When the drugged children grow up without learning emotional coping skills, the mysterious “mental illness” can be blamed. Neither Psychiatry or Big Pharma will be held responsible for failures in children (its mental illness`s fault), when some children are successful, Psychiatry and Big Pharma will take credit. Its win win for those in power.

  6.  
    Tex
    January 20, 2012 | 1:25 AM
     

    Little strange to see any criticism of Allen’s statement here. Got to wonder how many other people would have laid bricks in the cold Pennsylvania winter till their hands were bleeding, just to make enough money to file the next court document? Or who else would have skipped meals to pay for copies and faxes to the courthouse?

    Maybe today he should have yelled “Are you not entertained??” like Russell Crowe:
    http://www.youtube.com/watch?v=FI1ylg4GKv8

  7.  
    Allen Jones
    January 24, 2012 | 10:58 PM
     

    Thanks Tex. You nailed it.

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