Janssen Pharmaceuticals has settled its legal cases with 36 states and the District of Columbia regarding promotional and marketing practices for its atypical antipsychotic prescription medication Risperdal.
The company will shell out $181m to the participating states accordingly to resolve state consumer protection law claims, according to Janssen.
All parties including Janssen have defended the payment saying it is not an acceptance of fine or violation of any law.
The company resolved the concerns of the attorneys general to keep away unwanted expense and a prolonged legal process.
Janssen Pharmaceuticals president Michael Yang said, "We have chosen this path to achieve a prompt and full resolution of these state claims and to ensure we continue to focus on our mission of providing medicines to meet the significant unmet needs of many people who suffer from mental illness."
Janssen in future will not promote any of its atypical antipsychotics for off-label uses or make any false claims related to the products and has also placed a system to monitor marketing and promotion policies, as part of the settlement.
Rispedal is used to treat patients suffering from schizophrenia and bipolar mania.
The multi-state consumer fraud settlement is separate from the recent disclosure made by Johnson & Johnson regarding its three civil False Claims Act matters, which are pending in US courts.