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Feds said to reject $1B Risperdal settlement offer from Johnson & Johnson

National news organizations such as the Wall Street Journal, Bloomberg and Reuters are reporting that the Justice Department rejected a $1 billion settlement offer by Johnson & Johnson.

Citing anonymous sources, the news outlets report that the government is instead asking for $1.8 billion to settle civil claims by the government and others that the pharmaceutical company marketed Risperdal for unapproved uses.

Risperdal and its generic forms are approved by the FDA for use in treatment of bipolar disorder, schizophrenia and autism. Lawsuits by state and federal governments claim that Johnson & Johnson has been marketing Risperdal for unapproved uses, such as for the treatment of dementia in the elderly.

Johnson & Johnson has already paid out millions in suits over the allegations, including $158 million to Texas, $327 million to South Carolina and $258 million to Louisiana.

Johnson & Johnson declined to comment for this story.

A spokesperson for the Justice Department said it would not comment on the accuracy of the national news reports and noted that the department does not confirm or deny the existence or the status of an investigation.

Follow HFN associate editor Stephanie Bouchard on Twitter @SBouchardHFN.

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