Johnson & Johnson agreed to pay $117 million to settle claims by 41 states, including Arkansas, that it misrepresented the risks of vaginal-mesh products used to bolster sagging organs and treat incontinence in women.
A group of state attorneys general argued after an investigation that marketing by Johnson & Johnson and its Ethicon unit misrepresented the safety of the device, which is alleged to damage organs and leave women in constant pain, according to Ohio Attorney General David Yost.
"These companies didn't paint a clear picture of the devices' medical risks, preventing patients from making well-informed decisions," Yost said in an emailed statement. Ohio is getting $6.3 million under the deal, Yost added.
Johnson & Johnson officials said they had disclosed the multistate investigation to the U.S. Securities and Exchange Commission. The accord "involves no admission of liability or misconduct on the part of Ethicon," Mindy Tinsley, a spokeswoman for the Johnson & Johnson unit, said in an emailed statement.
Arkansas Attorney General Leslie Rutledge announced that Arkansas will get $1,855,302.53 under the settlement.
"Arkansas moms, sisters and daughters have been deceived by false claims of Johnson & Johnson, and now they must endure irrevocable damage to their bodies," Rutledge said. "This settlement confirms these victims have been heard, and I will remain diligent to protect Arkansans from companies not following the law."
In addition to the 41 states, the settlement includes the District of Columbia.
The deal requires the company to cease its claims that the surgical technique can eliminate any risks, as well as to disclose a list of risks, including loss of sexual function, mesh eroding into the vagina and the possible need for corrective surgery.
Johnson & Johnson still faces nearly 25,000 lawsuits filed by women who blame the vaginal mesh for their injuries, according to a July SEC filing. The company has incurred tens of millions of dollars in damages in the trial of some suits, while getting others thrown out at the trial or appellate level and settling still others.
Shares of Johnson & Johnson closed up 0.74% to $136.17 in New York trading on Thursday.
The pact comes as a California judge weighs whether to hit Johnson & Johnson with about $800 million in penalties over the state's claims that the device was fraudulently marketed. It was the first state claim to go to trial over the products.
Johnson & Johnson agreed earlier this year to pay $10 million to Washington state to settle its claims on the eve of a trial in state court. Washington Attorney General Bob Ferguson had sued in 2016, alleging Johnson & Johnson and Ethicon violated his state's consumer protection laws by not properly warning women about the mesh's health risks.
In 2012, Johnson & Johnson agreed to stop selling four lines of vaginal mesh after facing complaints by thousands of women that the products, threaded into place through incisions in the vagina, eroded over time, causing pain and injuries.
Some of the products are still on the U.S. market, and hundreds of thousands of women have already had the devices surgically implanted, according to Yost's office.
It comes as Johnson & Johnson is swamped with thousands of lawsuits claiming patients were harmed by products including baby powder, opioid painkillers and prescription drugs such as its schizophrenia drug Risperdal. Headlines about the litigation and big jury verdicts against Johnson & Johnson, including an $8 billion punitive award to a young man who grew breasts while taking Risperdal, have depressed Johnson & Johnson's stock price for nearly a year.
Most of the verdicts against Johnson & Johnson have been overturned or are being appealed.
Information for this article was contributed by Jef Feeley of Bloomberg News and by Linda A. Johnson of The Associated Press.
Business on 10/18/2019