J&J Settles Most Risperdal Lawsuits, Pays $800M In Legal Fees

Johnson & Johnson said it has settled most of the lawsuits it faced by thousands of men who claimed its anti-psychotic drug Risperdal caused them to develop excessive breast tissue and disclosed that it recorded $800 million in expenses in connection with the agreement.

Photo Insert: J&J said that it reached a settlement in principle in September to resolve "substantially all" of the roughly 9,000 cases.

J&J said in a filing with the US Securities and Exchange Commission on Friday that it reached a settlement in principle in September to resolve "substantially all" of the roughly 9,000 cases that the New Brunswick, New Jersey-based drugmaker faced over Risperdal, Nate Raymond reported for Reuters.

The company said it reached the agreement with lawyers handling cases including a lawsuit in state court in Philadelphia by Nicholas Murray, a Maryland resident who a jury awarded an $8 billion punitive damage award in 2019 that a judge later reduced to $6.8 million.

The lawsuits generally accused J&J of failing to warn of the risk of a condition called gynecomastia associated with Risperdal, which they said the company marketed for off-label, unapproved uses with children. J&J denied the allegations.

J&J said it accrued $800 million in legal expenses in the third quarter related to the settlement. It was unclear what other cases in the United States were part of the accord.

Many of the lawsuits were also pending in Pennsylvania, and the company also faced cases in California and Missouri.

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