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Johnson & Johnson, the US healthcare group, said it will take a $600m charge in the second quarter to settle lawsuits over allegations of bribery and improper marketing of several drugs.
In April, an Arkansas judge told J&J it must pay $1.1bn in penalties for misleading patients and doctors about risks associated with its antipsychotic drug Risperdal. A spokeswoman for the company’s Janssen unit said at the time that J&J would seek a new trial or appeal against the decision.
J&J is facing lawsuits in several states surrounding Risperdal and has been ordered to pay nearly $600m in penalties by judges in Louisiana and South Carolina.
In January the company agreed to pay $158m to settle charges that it improperly marketed Risperdal, an antipsychotic drug, in Texas.
J&J is also facing civil charges for allegedly marketing Invega and Natrecor for unapproved uses and over claims that it paid kickbacks to Omnicare, a pharmacy services company, to boost sales of Risperdal to nursing home patients.
“We will not have more to say about this charge beyond what is stated here and in prior disclosures about litigation matters,” Bill Price, a J&J spokesman, said late on Friday.
Recalls and litigation associated with faulty products have haunted J&J in recent years and Alex Gorsky, the company’s new chief executive, has pledged to restore confidence among customers and investors.
J&J lost about $900m in sales in 2010 related to recalls in its consumer division. During the final three months of last year, J&J recorded $2.9bn in charges associated with lawsuits and recalls.
Shares of J&J fell 0.1 per cent to $62.92 in after-hours trading on Friday