AHF: J&J’s $4 Billion Hip Lawsuit Settlement Shows Pharma’s Immense Wealth—and Greed

  AHF: J&J’s $4 Billion Hip Lawsuit Settlement Shows Pharma’s Immense
  Wealth—and Greed

  Johnson & Johnson, one of America’s most trusted brands, to agree to a $4
billion settlement to resolve over 7,500 federal and state lawsuits involving
recalled J&J hip implants; settlement follows $2.2 billion fine levied against
 J&J by the Department of Justice for its illegal marketing of antipsychotic
                                    drugs

Business Wire

LOS ANGELES -- November 12, 2013

As news of Johnson & Johnson’s (J&J) plan to announce a $4 billion settlement
to resolve over 7,500 federal and state lawsuits involving recalled J&J hip
implant products spilled out earlier today via a Bloomberg news article,
officials from AIDS Healthcare Foundation (AHF), the largest global AIDS
organization, pointed out that the enormity of the settlement for J&J’s
wrongdoing underscores the immense wealth and greed of the pharmaceutical
industry. The news follows closely on the heels of last week’s announcement of
a $2.2 billion fine levied against J&J by the Department of Justice over J&J’s
illegal marketing of its antipsychotic drugs.

“In a two week period, Johnson & Johnson, one of America’s most trusted
brands, will have racked up over six billion dollars in fines and legal
settlement costs for its wrongdoing—six billion dollars,” said Michael
Weinstein, President of AHF. “The fact that Johnson and Johnson can so readily
consent to billion-dollar fines and/or legal settlements shows both the
incredible wealth—and greed—of the pharmaceutical industry. J&J’s latest
transgressions and news of this pending settlement also underscore a growing
pattern of greed and abuse that governs the pharmaceutical industry as a whole
today.”

In a separate matter involving wrongdoing by J&J, AHF recently sued Johnson &
Johnson and its subsidiaries in the Superior Court of California for cheating
on its AIDS drug pricing and overcharging AHF by as much as $2 million on
HIV/AIDS drugs purchased between 2005-2012. AHF’s lawsuit alleges that the
companies have “…failed to fully satisfy their obligations with respect to the
drugs they sold to AHF over a period of many years,” under the 340B Program, a
Federal drug discount program designed to stretch scarce Federal resources as
far as possible for safety net healthcare providers such as AHF. The J&J
Companies include Johnson & Johnson, Janssen Therapeutics and Janssen Biotech.
Together, they control a significant portion of the AIDS drug market with
drugs that include Prezista, Intelence, Endurant and Procrit.

AHF’s lawsuit against J&J was filed Wednesday, October 30, 2013, in the
Superior Court of California, County of Los Angeles, Central District [case
#BC526253]. The action against J&J includes claims of “Violation of California
Unfair Competition Law; Breach of Contract—Third Party Beneficiary;
Negligence; Unjust Enrichment and Breach of Covenant of Good Faith and Fair
Dealing.”

About AIDS Healthcare Foundation

AIDS Healthcare Foundation (AHF), the largest global AIDS organization,
currently provides medical care and/or services to more than 250,000
individuals in 32 countries worldwide in the US, Africa, Latin
America/Caribbean, the Asia/Pacific Region and Eastern Europe. To learn more
about AHF, please visit our website: www.aidshealth.org, find us on Facebook:
www.facebook.com/aidshealth and follow us on Twitter: @aidshealthcare.

Contact:

AIDS Healthcare Foundation
Ged Kenslea, Senior Director, Communications
Tel: 323-308-1833
Cell: 323-791-5526
gedk@aidshealth.org
or
Laura Boudreau, Chief Counsel for Operations
Tel: 323-860-5202
laura.boudreau@aidshealth.org