Johnson and Johnson accused of marketing products for unsanctioned use

July 19, 2012 12:50 pm Published by Leave your thoughts

Products sold to customers or clients must follow specific regulations to ensure their safety. This also includes appropriate marketing techniques that do not endanger consumers, as one drug company may have marketed its products toward the wrong use. If a business owner finds oneself defending their product against customer complaints, he or she may want to confer with a business attorney in Phoenix.

This problem can be seen in the case against the Johnson and Johnson company. Accusations have alleged that its drug sales practices do not follow U.S. regulations and that Johnson and Johnson marketed the medication toward unapproved uses. In fact, the federal government has been investigating the company since 2004, according to Bloomberg.

Some other accusations against the company include incentives offered to doctors and pharmacists that buy the products to boost sales as well as dozens of recalls due to manufacturing problems with medications, according to The Miami Herald.

Nonetheless, officials from Johnson and Johnson said in a statement, "[The company] continues to deny the claims in the plaintiffs' lawsuit."

Investor lawsuits allege that the directors of the company disregarded any wrongdoing from other departments, which is why officials are attempting to settle the suits by providing more oversight and collaboration in the manufacturing and marketing of all drugs.

The firm will develop a board-level group to oversee the other departments in their compliance with regulations. Also, J&J is planning on incorporating updated risk-management policies. As for the monetary aspects of the settlement, Johnson and Johnson is providing $2.2. billion to their investors.

Officials also stated that the investigations regarding the antipsychotic drug Risperdal are being resolved.

Business regulations can be a quagmire;  liability on products may be "strict," i.e. without fault, and investors may have claims against  the company, its directors and officers for mistakes made. Therefore, a business owner or CEO that needs to defend or prevent their company or products from an investor lawsuit may want to consult  with an attorney for business.

Categorised in: Uncategorized

This post was written by