Judge Approves $158M Drug Settlement in Texas Lawsuit

A Texas judge has finalized a $158 million settlement between Texas and a subsidiary of health care giant Johnson & Johnson in a Medicaid fraud lawsuit over the anti-psychotic drug Risperdal.

The agreement, reached during a January trial settled a lawsuit that accused J&J and its subsidiaries of fraud by false or misleading statements about the safety, cost and effectiveness of the drug.

The settlement was approved during a court hearing Tuesday in Austin.

The whistleblower lawsuit was filed by Allen Jones. His attorney, Tom Melsheimer, said Texas will get 40 percent of the settlement; the federal government gets 31 percent; Jones gets 17 percent; and 12 percent goes to attorneys’ fees.

The health care giant has said it’s not admitting fault with the settlement.