Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Drug & Device News

By ljnstaff
August 01, 2017

Parent J&J Is Off the Hook; Not So Its Subsidiary

U.S. District Judge Michael Shipp has granted Johnson & Johnson's (J&J's) motion for summary judgment in a suit alleging that its subsidiary, Janssen Products, promoted off-label use of its HIV/AIDS drugs Prezista and Intelence. Citing to precedent set by the U.S. Court of Appeals for the Third Circuit in In re Burlington Coat Factory Securities Litigation, Judge Shipp concluded that “mere ownership” of a subsidiary did not subject the parent company to liability. However, the qui-tam claims brought by relators within Janssen's sales force got the green light to go forward.

The claims allege that Janssen violated the federal False Claims Act (FCA), the federal Anti-Kickback Statute, and a number of state anti-fraud laws by inducing physicians to prescribe the drugs for off-label uses in order to reap payments from Medicaid and Medicare. The scheme, the plaintiffs say, involved the company conducting dinners for physicians at which speeches were made, while promoters were planted throughout the audience to ask specific questions with the aim of convincing attendees to prescribe the drugs to their patients. In addition, the claims allege that the manufacturer said Prezista does not negatively affect cholesterol or triglyceride levels, when in fact it does, and can therefore increase a consumer's cardiovascular disease risk.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.