JNJ Johnson and Johnson

By Stephen Nakrosis

New York State Gov. Andrew Cuomo on Thursday said the state has filed civil charges against Johnson & Johnson and several of its subsidiaries, alleging the company fraudulently mischaracterized the safety and effectiveness of opioid drugs in an effort to expand the market.

The actions are a part of an effort to recover $2 billion in what the state has deemed insurance premium overcharges for New York residents, the state's Department of Financial Services said in a release.

The department said it has initiated administrative proceedings against J&J and its subsidiaries Janssen Pharmaceutica, Janssen Pharmaceuticals, and Ortho-McNeil-Janssen Pharmaceuticals.

The claim alleges that J&J has "had a long-standing and multi-faceted leading role in originating, supplying, facilitating, and actively creating a dangerous market for opioids for chronic pain treatment."

The department alleges J&J violated parts of the state's insurance law, and that each fraudulent prescription constitutes a separate violation.

J&J in a statement said that its marketing and promotion of prescription opioid pain medications was "appropriate and responsible."

"Janssen provided these medicines for doctors treating patients suffering from pain and worked with regulators to provide appropriate information about their risks and benefits--everything you'd expect a responsible company to do," the company said.

A hearing is scheduled for Jan. 25.

The state's Department of Financial Services announced the launch of an investigation into opioid manufacturers, distributors and pharmacy benefit managers a year ago along with the $2 billion target. Johnson & Johnson is the fourth company to face charges since then.

The action is separate from thousands of civil lawsuits filed by states, including New York, cities and counties against opioid-industry players for allegedly helping fuel the opioid epidemic.

--Sara Randazzo contributed to this article.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

September 17, 2020 13:31 ET (17:31 GMT)

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