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J&J settles most Risperdal lawsuits, with $800 million in expenses -Breaking

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© Reuters. FILE PHOTO: The Johnson & Johnson logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2019. REUTERS/Brendan McDermid/File Photo

(Reuters) – Johnson & Johnson (NYSE:) said it has settled most of the lawsuits it faced by thousands of men who claimed its anti-psychotic drug Risperdal caused them to develop excessive breast tissue and disclosed that it recorded $800 million in expenses in connection with the agreement.

J&J said in a filing with the U.S. Securities and Exchange Commission on Friday that it reached a settlement in principle in September to resolve “substantially all” of the roughly 9,000 cases that the New Brunswick (NYSE:), New Jersey-based drugmaker faced over Risperdal.

The company stated that it had reached an agreement in which lawyers would handle cases, including one involving Nicholas Murray (a Maryland resident) who was sued in Philadelphia in a case involving a lawsuit. Nicholas Murray is the plaintiff in the suit. He was awarded $8.4 billion by a jury in 2019. A judge then reduced this amount to $6.8million.

J&J said it accrued $800 million in legal expenses in the third quarter related to the settlement.

Unknown were the details of any other United States cases which may have been part of this agreement. Many of these lawsuits were also being filed in Pennsylvania. Additionally, the company faced legal issues in California and Missouri.

Requests for comment were not answered by plaintiff lawyers immediately.

The lawsuits generally accused J&J of failing to warn of the risk of a condition called gynecomastia associated with Risperdal, which they said the company marketed for off-label, unapproved uses with children. J&J denied the allegations.

Risperdal was first approved by the U.S. Food and Drug Administration in 1993 for schizophrenia and bipolar disorder in adults. However, its approval was granted in 2006 for children with irritability due to autism.

Separately, the company agreed to pay $2.2Billion in U.S. civil and criminal investigations into Risperdal’s marketing and sale.

The U.S. Supreme Court in May rejected a bid by Johnson & Johnson to overturn a $70 million jury verdict against the company for its failure to warn about risks associated with off-label uses of Risperdal. The court turned away the J&J’s appeal of a 2019 ruling by the Superior Court of Pennsylvania that upheld the verdict in favor of a Tennessee man who was prescribed the drug at age 4 in 2003.

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