Johnson & Johnson to Pay $158 Million to Texas

It was just a matter of time before the ugly visage of the corporate vulture became public. At last, the pharmaceutical giant Johnson & Johnson has agreed to pay $158 million to the state of Texas on claims that the company “overcharged” Medicaid and “illegally promoted” the antipsychotic drug Risperdal. Johnson & Johnson “allegedly” over-hyped the benefits of the drug and downplayed its risks. The settlement is said to be the largest Medicaid fraud settlement in state history. David Sell, Boston Herald 01/19/2012 Read Article: Boston Herald

Shareholders Fight Back In Suit Against Johnson and Johnson

Johnson and Johnson shareholders have accused the company of ignoring "red flags" that predated J and J product recalls and government investigations into J and J earlier this year.

The shareholders have sued company executives and have asked for damages. The suit claims the company received "years of red flag warnings of systemic misconduct" but did nothing.

The government is "investigating whether J and J illegally marketed drugs and devices for uses not approved by the Food and Drug Administration and paid kickbacks."

Read: David Voreacos and Alex Nussbaum , Bloomberg: J and J Directors Ignored ‘Red Flags’ on Recalls, Probes…

Johnson and Johnson Recalls Medicines

McNeil Consumer Healthcare, a division of Johnson & Johnson, recalled several hundred batches of Benadryl, Motrin, Rolaids, Simply Sleep, St. Joseph Aspirin and Tylenol because of a moldy smell upon opening. The recall came 20 months after numerous complaints were logged.

Once the FDA got involved, the plot thickened.

Last week, the FDA sent a warning letter to the company, noting that consumers not only complained about the moldy smell, but also complained about digestive problems like nausea, vomiting and stomach pain.

Coming clean, McNeil released a statement saying, chemicals used to treat wood pallets that transport and store product packaging were the source of the problem.

For more, read Natasha Singer, The New York Times 01/17/2010 The New York Times

Child Cough Medicines Recalled

Johnson & Johnson has ordered a voluntary recall of certain cough and cold products for infants amid reports that misuse could lead to overdoses.

A Johnson & Johnson spokesman says the recall affects infants under two years of age who are particularly at risk for overdose if the products were not administered properly.

The products being recalled include: infants' Tylenol Drops Plus Cold; Concentrated Infants' Tylenol Drops Plus Cold & Cough; Pediacare Infant Drops Decongestant; Pediacare Infant Drops Decongestant & Cough; Pediacare Infant Dropper Decongestant; Pediacare Infant Dropper Long-Acting Cough; and Pediacare Infant Dropper Decongestant & Cough (PE) products.

The Food and Drug Administration issued a public health advisory earlier this year warning parents not give cough and cold medicines to infants and toddlers without a doctor’s direction.

AP, The Washington Post 10/11/2007 Read Article: The Washington Post