Justia Health Law Opinion Summaries

In 1993, Appellants developed Risperdal, a second-generation, or atypical, antipsychotic medication, which was considered highly beneficial in treating schizophrenia patients. In 2007, the State filed suit against Appellants, alleging that Appellants (1) knowingly made false statements or representations of material fact in their Risperdal label in violation of the Arkansas Medicaid Fraud False Claims Act (“MFFCA”); and (2) violated the Arkansas Deceptive Trade Practices Act (“DTPA”) by distributing a promotional letter to Arkansas healthcare providers that contained “false, deceptive, or unconscionable statements.” A jury found that Janssen violated the MFFCA and the DTPA by failing to comply with federal labeling requirements and imposed civil penalties totaling $11,422,500. The Supreme Court (1) reversed and dismissed the MFFCA claim, as Appellants were not healthcare facilities or applying for certification as described by the statute; and (2) reversed and remanded the DTPA claim, holding that the circuit court abused its discretion in admitting certain hearsay into evidence.View "Ortho-McNeil-Janssen Pharms., Inc. v. State" on Justia Law