Guilty Verdict in Whistleblower Case Against Janssen Could Lead to $1 Billion Payout
A monumental jury verdict was handed down on June 13, 2024, marking a historic win. Johnson & Johnson subsidiary Janssen Products, LP, was found liable for the illegal off-label promotion and marketing of its HIV/AIDS-treatment drugs, Prezista and Intelence. This judgment, stemming from violations of the federal False Claims Act and various state False Claims Acts, could ultimately exceed $1 billion.
The unanimous decision by a jury of eight in Philadelphia concluded that Janssen defrauded Medicare, Medicaid, and the AIDS Drug Assistance Program. The company was found responsible for submitting 159,574 false claims for reimbursement, resulting in single damages of roughly $120 million for federal False Claims Act violations and roughly $30 million for state violations. Considering the mandatory trebling of damages and civil penalties provided by the False Claims Acts, the final judgment could set a historic precedent in pharmaceutical litigation.
This verdict comes after over a decade of legal battles initiated in 2012 by whistleblowers Jessica Penelow and Christine Brancaccio. The case was filed as United States ex rel. Penelow v. Janssen Products, LP, in the District of New Jersey. Despite the government’s decision not to intervene, the Relators and their legal team pursued the case relentlessly, nonetheless.
The litigation journey saw several critical junctures, including the defeat of Janssen’s motion to dismiss in 2017 and its motion for summary judgment in 2021. At the trial, which commenced on May 6, the whistleblowers presented compelling evidence of Janssen’s nationwide scheme from 2006 through 2014, to market Prezista and Intelence for unapproved uses. The whistleblowers, former Janssen sales representatives, alongside five other ex-employees, provided crucial testimony revealing how company management orchestrated off-label promotions to boost drug sales despite limited FDA-approved indications.
The potential billion-dollar payout will no doubt serve as a powerful deterrent against future fraudulent conduct, reinforcing how the False Claims Act protects public funds and ensures the integrity of healthcare programs. It also highlights the critical role of whistleblowers in supplementing the government’s limited resources to police fraud and other misconduct, especially in the healthcare arena.
If you have information about potential pharmaceutical or healthcare fraud and would like to speak to an experienced Constantine Cannon whistleblower lawyer team member, please don’t hesitate to contact us for a free and confidential consultation.