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This

1:25

episode of Swindled may contain graphic

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1:32

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1:41

We're here that outpatient. And

1:43

that's our number one concern. We wanna improve

1:45

their lives. We wanna get them up and moving

1:47

again. So we are working on

1:49

new products all the time, working on

1:51

making sure they're thoroughly tested

1:54

and designed

1:56

in the best way possible.

1:58

Two

1:58

thousand five was an exciting

1:59

year for the Pew Orthopedics. The

2:02

company was finally allowed to sell its

2:04

new hip implant in the United States,

2:07

the articular surface replacement

2:10

or the ASR was held as a breakthrough

2:12

in medical intubation. The

2:14

implants metal on metal cup and thigh

2:16

components were supposed to last

2:18

longer and feel more natural than its antiquated

2:21

counterparts. The

2:22

procedure also required less of a patient's

2:25

thigh bone to be removed during surgery,

2:27

and that's widely accepted as

2:29

a good thing. The

2:31

ASR hip implant had been in use

2:33

in Europe since two thousand three

2:35

with great success according to

2:37

the Pew. However, the version

2:39

of the ASR being marketed in the

2:42

US would be a little different. The

2:44

food and drug administration would require

2:46

a clinical trial of the new metal

2:48

on metal implant, which could take

2:50

years.

2:51

But luckily for the Pew, there's

2:53

a nice big loophole called the five

2:56

ten k process, which allows

2:58

manufacturers of medical devices

3:00

to have their products preapproved by

3:02

the FDA if it can demonstrate that

3:04

they are substantially similar to a product

3:06

that has already been approved through

3:08

the longer standard process. The

3:11

intended purpose is to give manufacturers

3:13

the ability to make quick continual

3:16

improvements to existing devices,

3:18

which makes sense. But

3:19

in some cases, the five

3:22

ten k process has been abused.

3:25

In this case, the Pew combined

3:27

the metal thigh component of an product

3:29

with the new metal cup from the European

3:32

ASR essentially replacing

3:34

the plastic. And

3:35

there you have a metal on metal

3:37

hip replacement that's similar enough

3:39

to an existing product on the market that

3:41

it would not require testing.

3:44

The Pew's ASR hip replacement was

3:46

officially for sale in the United

3:48

States. Over

3:50

the next few years, doctors implanted tens

3:52

of thousands of those things. By

3:55

two thousand and eight, the Pew had sold more

3:57

than a billion dollars worth of ASRs.

3:59

The excitement was palpable at appears

4:02

Marty grew up in the sales conference that

4:04

year. A

4:04

parade through the meeting hall featured costume

4:07

delegators, a giant metal hip

4:09

implant, and a man in a lab

4:11

coat covered in blood, carrying

4:13

an axe. All

4:14

this while DePugh's head of marketing tried to

4:16

single log, to a parody

4:18

cover of bachman Turner overdrives taken

4:21

care of business. The

4:22

Pew's version was a tribute to the ASRs

4:25

rapidly expanding market share. called

4:27

taking

4:27

shares of business.

4:59

but

5:00

the party was short lived. Recipients

5:03

of the ASR hip implant all

5:05

over the world began complaining of

5:07

scrutiating pain within a few years of their

5:09

surgeries. Anne Morrison,

5:12

a fifty year old physical therapist from

5:14

Delaware. told the New York Times

5:16

that she requires a brace to walk

5:18

and can no longer work after

5:20

having both of her all metal hip replacements

5:22

replaced.

5:23

after experiencing constant discomfort

5:25

and inflammation.

5:27

Marianne Dorn boasts a fifty six

5:30

year old former IBM employee in

5:32

Illinois told the times that she

5:34

couldn't stand up long enough to cook a meal

5:36

after her ASR was implanted. She

5:38

eventually had it replaced, but the pain

5:40

remained I have been told that I have

5:42

to be prepared that it will be like this for the

5:44

rest of my life, she said. Angie

5:47

Rodriguez, and California had both

5:49

hips replaced with the metal on metal

5:51

version two. But like so many others,

5:54

Angie said it never felt right. Before

5:56

long, she told ABC seven it

5:58

became evident that there was

5:59

a problem.

6:01

On my right hip, I noticed a

6:03

growth. It was a half

6:06

of a great fruit size pillow

6:08

of fluid is what it turned out to be.

6:10

And they said that that was a pseudo tumor,

6:13

the pocket full of of fluid

6:15

and metal debris. Yeah.

6:16

A

6:17

pocket full of fluid and metal

6:19

debris, caused

6:20

by the metal ball grinding against

6:22

the edge of the metal cup inside the

6:24

artificial joint. That

6:26

metal debris was seeping into patients

6:29

surrounding tissue and destroying

6:31

it beyond repair. The

6:33

only relief was getting a second painful

6:36

and expensive hip replacement. Sometimes

6:38

it took a third and a fourth.

6:41

In

6:41

the worst cases, the patient's

6:43

muscles, nerves, and bones were so decimated

6:45

by the metal debris that it was impossible

6:48

to operate on them again. The

6:50

bone and soft tissues around the hip

6:52

start to look like pieces of cheese except

6:54

pitch black pieces of cheese. That's

6:57

how orthopedic surgeon Herbert Huddlston

6:59

described what he had seen in patients with

7:01

metal on metal hips to ABC seven.

7:04

Sometimes

7:04

we get in there and it looks like it's filled

7:06

with the old oil that you've drained from

7:08

your car. Huddlston said,

7:11

it's

7:11

quite unbelievable and the bad

7:13

cases Doctor Anthony

7:15

Nargol told the same station, you

7:17

go in there, you touch the muscle, and it

7:19

just disintegrates, it just like

7:21

liquefies. that's just destroyed

7:24

in your hand. Doctor

7:26

Nargol and our colleague had discovered

7:28

the ASR's critical design flaw

7:30

at their lab in the UK In

7:32

February two thousand nine, the surgeons met

7:34

with the Pew officials who said they'd never

7:36

heard of anything like that before.

7:38

The company expressed confidence in

7:41

its well selling device and turned the tables.

7:43

The Pew blamed any problems associated with

7:46

the ASR implants. on the

7:48

doctor's improper surgical techniques.

7:50

The orthopedic

7:52

surgeons in Australia must have

7:54

been incompetent to around

7:56

the same time The high rate of failure

7:58

in the ASR hip implant

7:59

was reflected in Australia's medical

8:02

device registry. There

8:03

were numerous reports of metallic debris

8:06

and dissolving muscle tissues.

8:08

Doctors were finding Chromium and cobalt

8:11

ions and patient's blood

8:13

samples not

8:13

good. But

8:15

fortunately, there was no evidence of

8:17

these side effects in the United States medical

8:19

device registry.

8:21

but only because the US does not

8:23

have a medical device registry.

8:26

In America, all safety alerts and

8:28

recalls related to a medical device

8:30

come from the for profit manufacturer of

8:32

that medical device, implementing

8:35

a national registry for everyone's

8:37

safety would be an expansion of

8:39

government and close a waste of money,

8:41

critics say, as Medicare

8:43

continues to spend hundreds of millions of

8:45

taxpayer dollars every year, to

8:46

have faulty products removed or replaced,

8:49

which is exactly what was happening with

8:52

the Pew's ASR hip replacements

8:54

The

8:54

number of affected patients was growing

8:57

by the day, as were the number of

8:59

lawsuits filed against a few orthopedics

9:01

and its parent company. Johnson

9:03

and Johnson, the

9:04

family friendly multinational corporation

9:07

that seemingly owns everything.

9:10

but there was no panic inside the company's headquarters

9:12

in New Brunswick, New Jersey. Johnson

9:14

and Johnson had a weather that's fair share

9:16

of controversies in its one hundred

9:19

twenty five year old existence. For

9:21

example, in the early eighties, seven

9:23

people in the Chicago area died After

9:26

ingesting cyanide laced with Tylenol, they

9:28

had purchased off store shelves. The

9:30

case

9:30

remains unsolved, but j

9:32

and j came out of it looking better than

9:35

ever. The company was widely

9:37

commended for its quick response in

9:39

recalling all Tylenol products and

9:41

for its honesty and its communications

9:43

with the public.

9:44

a textbook example of

9:46

successful crisis management.

9:48

But those decisions were easy

9:50

in comparison. McNeil, the J

9:52

and J subsidiary that manufactures

9:55

Tylenol, Motrin, and other consumer health

9:57

products, accounts for only one percent

9:59

of Johnson and

9:59

Johnson's total sales.

10:01

Removing McNeil's products from the

10:03

market temporarily would cause only

10:05

minimal damage to the company's bottom

10:07

line.

10:08

Pharmaceutical drugs and medical

10:10

devices are where Johnson and Johnson's bread

10:12

is really buttered, admitting that

10:14

there was a problem with their shiny new all

10:16

metal hip implant. could have

10:18

drastic financial consequences.

10:21

Behind closed doors, the Pew decided to

10:23

quietly phase out the ASR

10:25

hip replacement because of, quote,

10:27

declining sales. Even though

10:29

the truth was that the FDA had

10:31

recently denied its application to sell

10:33

the European version in the states.

10:36

the

10:36

device had no future. Dupu

10:38

did not immediately communicate its plans

10:40

to medical professionals or the public

10:42

because there was still plenty of

10:44

inventory to move.

10:45

but it did finally issue a safety alert

10:48

for the ASR in March two thousand

10:50

ten. Almost two years and tens of

10:52

thousands of patients after depute

10:54

first learned of its critical design

10:56

flaw. A month later in

10:58

April two thousand ten, Johnson

11:00

and Johnson did issue a recall,

11:02

but not for the ASR. J

11:04

and J recalled more than one

11:06

hundred thirty five million units of

11:08

children's tylenol, bina drill,

11:10

and Motrin medicines for

11:12

possible bacterial contamination in

11:14

the presence of small metal parts.

11:18

Unlike

11:18

the Tylenol murders of the eighties,

11:20

this recall was a public relations disaster

11:22

for the company. It was revealed

11:24

that Johnson and Johnson hired a third

11:27

party consultant to secretly buy

11:29

up all the defective medicines from

11:31

store shelves to avoid informing

11:33

regulators and staging a full

11:35

blown recall. but

11:36

the plan backfired tremendously. At

11:39

Johnson and Johnson lost its

11:41

way, Wall Street wondered, The

11:43

corporation

11:43

has always been so proud of its organizational

11:46

credo, which,

11:47

quote, challenges

11:48

us to put the needs and well-being of the

11:51

people we serve first. If

11:53

those

11:53

principles still hold true, Johnson

11:56

and Johnson has a funny way of showing

11:58

it. In August

11:59

two

11:59

thousand ten, after continually

12:02

and consistently insisting that the

12:04

device was safe. Johnson

12:06

and Johnson finally recalled both

12:08

versions of the depute ASR hip

12:10

replacements. which had been implanted

12:12

in ninety three thousand patients

12:14

worldwide. The

12:15

recall followed a study by the British

12:18

Orthopedic Association, which found that

12:20

fifty percent of ASR implants

12:22

would fail within six years.

12:24

In

12:24

comparison, a traditional hip replacement

12:27

typically lasts about fifteen years.

12:30

Publically,

12:30

the Pew disputed the results,

12:32

but internally, the company had known

12:34

the truth for years. In two

12:36

thousand seven, The Pew engineers

12:38

tested the ASR's rate of wear

12:40

and the results were unacceptable. We

12:42

will ultimately need a cup redesign.

12:45

but the short term action has managed perceptions.

12:47

But the few sales official told a

12:50

colleague in a two thousand eight email.

12:52

That

12:52

email was found by the plaintiff's lawyers and

12:54

one of the first of over ten thousand

12:57

ASR related lawsuits that had

12:59

been filed. Lawyers

13:01

had also discovered how Dupuent was able to

13:03

capture enough market share to make

13:05

everybody singing dance in their khakis.

13:07

The

13:07

company was funneling money to orthopedic

13:09

surgeons through speaking fees and kickbacks.

13:11

In return, those orthopedic surgeons

13:13

would implant the ASR into

13:15

unsuspecting patients who simply

13:17

trusted their doctor suggestions. But

13:19

did you know you

13:22

can

13:22

sell even more?

13:26

Did you know that

13:28

the first billion is the hardest.

13:32

Billion here, billion

13:34

there, pretty soon it

13:36

adds up to some real money.

13:41

Anyone here wanna go for two? I'm

13:43

gonna say that again. Does

13:45

anyone here wanna go for two?

13:50

That's

13:51

what I'm talking about. That's

13:53

renowned orthopedic surgeon doctor

13:55

Thomas SmallsREIT rallying the

13:57

troops at two thousand eight DePew sales

13:59

conference

13:59

to sell more ASR hip

14:02

replacements. Why?

14:03

why Because

14:04

as a member of DePew's surgeon

14:06

design team, doctor Thomas

14:08

Schmallzreid received a cut. I

14:10

don't use the term cut. I'm

14:12

sorry. A percentage of

14:14

each ASR sold In

14:17

total, the pugh and Johnson and Johnson have paid

14:19

doctor Smalls REIT more than twenty

14:21

million dollars. He

14:22

was just one of many influential doctors

14:24

on the payroll Okay.

14:27

Now, I'm just asking then, in terms of

14:29

the things listed around your professional

14:31

life, I don't see your

14:33

position with the pew.

14:35

on

14:35

here, is

14:37

it? I don't think I have a

14:39

position with the Peter. I thought

14:41

you even admitted you were on

14:43

their surgeon design name.

14:46

Aren't

14:46

you? I have been on

14:48

the surgeon design team of

14:51

products

14:51

we've discussed today. In

14:53

fact, you've been paid over twenty

14:56

million dollars by

14:58

the Pew in

14:59

in a period of

15:02

what? Fifteen years. Right?

15:04

Something like that. Is there any

15:07

other job or any other thing on

15:09

your CV? where

15:10

you've been paid by any source,

15:13

twenty

15:13

million dollars or

15:15

more.

15:16

I

15:18

don't think so. If that

15:20

seems illegal, that's because

15:22

it's supposed to be. And the

15:24

Pew had already received slap of

15:26

the risk for such actions as

15:28

recently as two thousand seven. In

15:30

two thousand seven, without admitting to

15:33

any wrongdoing, deputy paid eighty four

15:35

million dollars to avoid criminal

15:37

prosecution for allegedly conspiring

15:39

to violate the federal

15:41

anti kickbacks statute by

15:43

paying orthopedic surgeons through

15:45

consulting agreements to use the

15:47

Pew products. In twenty

15:49

eleven, Johnson and Johnson paid seventy

15:51

million dollars to settle charges that

15:53

some of its foreign subsidiaries bribed

15:56

doctors in several European

15:58

countries to use their products.

15:59

and paid kickbacks to the Iraqi

16:02

regime of Saddam Hussein under

16:04

an oil for food program

16:06

rife with

16:06

fraud.

16:08

Johnson and Johnson lost the first

16:10

ASR related case that went to court

16:12

in March two thousand thirteen. The

16:14

Los Angeles jury awarded a Montana

16:17

corrections office more than eight point three

16:19

million dollars for the pain and suffering

16:21

caused by the artificial hip.

16:23

By the

16:23

end of two thousand thirteen, Johnson

16:25

and Johnson announced it would phase out all of

16:27

its metal hip devices due

16:30

to, once again, declining

16:32

sales.

16:33

Yes, the company was still selling a one version

16:35

called the Pinnacle, which, surprise,

16:38

had the same exact metal debris

16:40

problem as the ASR. As

16:42

a result, thousands of lawsuits related to

16:44

the Pinnacle hip replacement were stacking

16:46

up in a separate pile. So

16:48

in

16:48

November, J moved to settle

16:50

all of the ASR lawsuits at

16:53

once. Two point

16:55

five billion dollars to an estimated

16:57

eight thousand patients was the finalized

16:59

total. A third of the settlement,

17:01

about eight hundred million dollars, was set

17:03

aside for the lawyers who negotiated

17:06

the deal. Later,

17:07

additional payments were paid to patients who were

17:09

not part of the class action.

17:11

Five Texas plaintiffs received about one

17:13

hundred fifty million. six California plaintiffs

17:16

received about five forty three million,

17:18

and six plaintiffs from New York received

17:20

about two hundred forty seven million

17:23

dollars. Johnson and

17:23

Johnson and Dupu appealed every

17:26

single one. Then

17:28

on

17:28

May seventh two thousand nineteen,

17:31

Johnson and Johnson agreed to pay another billion dollar

17:33

settlement to almost six thousand plaintiffs

17:35

who had their all metal pinnacle

17:37

hip implants removed. I

17:39

know

17:39

it seems like a lot of money and a stiff

17:42

punishment. But

17:43

in the end, even after all the

17:45

settlements, the corporations still

17:47

came out ahead By itself,

17:48

the p o orthopedics earned twenty six

17:51

billion dollars in revenue in twenty

17:53

nineteen. Johnson and

17:54

Johnson as a whole collected

17:57

more than eighty two billion dollars.

17:59

All things considered

18:01

not a bad year. Oh,

18:03

and the United States federal

18:05

government never closed that five ten k

18:07

FDA loophole. So if

18:10

it

18:10

is financially beneficial to market

18:12

and sell a defective product.

18:14

What's

18:14

to stop them from doing it again?

18:17

well Well, luckily

18:18

for us, Johnson and Johnson has

18:21

that credo Remember? We believe our first

18:23

responsibility is to the patients,

18:25

doctors, and nurses, to mothers

18:27

and fathers, and all others who

18:29

use our products and services in

18:31

meeting

18:31

their needs. Everything we do must be

18:33

of high quality if

18:35

you say so. two

18:38

thousand nineteen, the same year Johnson

18:40

and Johnson was settling billions of dollars

18:42

in hip replacement lawsuits. It

18:44

was settling another multi billion

18:46

dollar lawsuit involving its pharmaceutical subsidiaries'

18:49

new drug for people with schizophrenia.

18:51

Keep that credo

18:53

in mind while listening to this

18:56

one. A

18:56

multinational corporation and properly

18:59

markets an antipsychotic drug to

19:01

children and the elderly and fails to

19:03

warn doctors and patients about

19:05

an irreversible side effect

19:07

on

19:07

this episode of swindled.

19:09

They bribed

19:11

the government officials accounted creator by

19:13

the citizens of the country as they long.

19:15

They don't have the greatest millions

19:17

of taxpayer dollars down the ways that

19:19

we maintain tens and billions of

19:22

dollars, million dollars. That'll be number ten hundred

19:24

and five thousand five hundred sports gentlemen,

19:26

which are responsible for the collapse of

19:28

the environment sitting in the floor of some kind

19:31

of prospects.

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21:07

problems. Last year, it was prescribed

21:09

more than six point five million

21:11

times and totaled more than one point

21:13

five billion dollars in

21:15

sales. But Risperdal can have troubling

21:17

side effects especially in

21:19

children. In

21:20

nineteen ninety four, Johnson

21:23

Pharmaceuticals, the Belgian unit of

21:25

Johnson and Johnson, announced some exciting

21:27

news. The Food and

21:28

Drug Administration had approved its new drug,

21:31

Risperdal, after clinical tests had shown

21:33

that the medication significantly reduced

21:35

symptoms of schizophrenia, like hearing

21:38

voices, hallucinations, paranoia,

21:40

and delusions of grandeur.

21:42

Risperdal also reduced the usual side

21:45

effects caused by antipsychotic drugs such

21:47

as uncontrollable body shakes.

21:49

This announcement coincided

21:52

with the plunging sales of Janssen's old

21:54

antipsychotic medicine, which had

21:56

reached the end of its patent life.

21:58

Generics had flooded the market.

21:59

Everything was cheaper. Risperdal

22:02

was Johnson and Johnson's way to

22:05

reestablish exclusivity over a

22:07

proven winner.

22:08

Risperdal worked but

22:10

that's not to say that CRISPREDOL was better than

22:12

existing medications. In fact, in

22:15

its approval, the FDA specifically

22:17

forbade Janssen from making that claim.

22:20

and its marketing materials for the new drug.

22:23

Risperdal was simply a different type of

22:25

medication, most effective in

22:27

schizophrenic adults. according

22:29

to the FDA. Schizophrenic

22:32

adults make up less than half a percent of

22:34

the world population. as Janssen

22:36

noted in its nineteen ninety four marketing

22:39

plan, not exactly a booming

22:41

market, quote, the

22:43

anticipated growth of the antipsychotic market

22:45

does not create enough room for the Risper

22:48

doll sales forecast. In other words,

22:50

there's not enough schizophrenic people to

22:52

sell Risper doll to get our sales

22:54

forecast hit.

22:55

However,

22:56

Johnson and Johnson and Johnson

22:59

had more ambitious

23:01

plans. It

23:01

started with the doctors. Sure.

23:03

Risperdal's label might say that it

23:05

is specifically meant to treat schizophrenia, but

23:08

doctors can prescribe whatever they want

23:10

to off label. Johnson

23:12

and Johnson could convince medical professionals

23:14

to prescribe risperdal to treat

23:16

other ailments. It's a mood stabilizer

23:19

after all. that could help psychological

23:22

disorders. That's how the

23:23

pitch would go. In

23:25

nineteen

23:25

ninety eight, Johnson and Johnson formed a

23:27

one hundred thirty six person

23:30

sales team for Risperdal, and named

23:32

it Elder Care. It was

23:33

Elder Care's job to be with

23:35

doctors across the country, specifically

23:38

doctors at nursing homes to spread the gospel

23:40

of Risperdal, the drug that could help with everything,

23:43

including dementia. As

23:45

an incentive Johnson and Johnson offered

23:47

these doctors paid speaking fees

23:49

based on the number of RISPERDOL prescriptions

23:51

they wrote. That approach seemed

23:53

to work. So did J and J's

23:55

partnership with the OmniCare, the

23:57

Kentucky based company that provided

23:59

pharmacy management

23:59

services to nursing homes all over

24:02

the country. OmniCare

24:03

chooses which medications hundreds of

24:05

thousands of patients receive every

24:07

day. According to The

24:08

New York Times, Johnson and

24:10

Johnson's Johnson Pharmaceutical Division

24:13

began paying Omnicare tens of millions of dollars

24:15

in rebates and fees to prescribe

24:17

Richard All for various conditions.

24:19

The returns for the company were

24:22

tremendous Risper doll was

24:22

reclaiming Johnson and Johnson's long

24:25

lost market share, even though older

24:27

cheaper drugs were just as

24:29

effective and available. Well,

24:31

a

24:31

surprising development. Johnson

24:33

and Johnson's top selling schizophrenia treatment

24:36

may work no better than older

24:38

pills sold for fraction of the price. This is according

24:40

to a study this week in the New England

24:42

Journal of Medicine. In

24:43

addition to doctors and pharmacies,

24:45

Johnson and Johnson targeted

24:48

government The company

24:48

successfully lobbied a dozen states

24:51

like Texas and Pennsylvania to

24:53

adopt RISPERDOL as its preferred first

24:55

line medication to treat

24:57

schizophrenia its state sponsored mental

24:59

health and Medicaid programs. With its

25:01

financial means, Johnson

25:03

and Johnson was able to convince these states

25:05

that the far more expensive new treatment

25:08

was superior to generics. Before

25:10

the adoption of Risperdal, these states

25:12

were paying two hundred fifty dollars a year

25:14

to treat an individual schizophrenic patient.

25:17

After risperol became the preferred choice,

25:20

the cost per patient skyrocketed

25:22

to three thousand dollars a year.

25:24

taxpayer funded corporate welfare

25:27

Still, Johnson

25:28

and Johnson and Johnson Pharmaceuticals wanted

25:31

more. In the late

25:32

nineties, the company started pushing Risper

25:34

doll. medication approved only for

25:36

its schizophrenic adults on the

25:38

children by

25:39

courting pediatricians and leaving

25:41

RISPR doll branded Lego building

25:43

blocks in their waiting rooms. Sometimes they'd

25:45

host an ice cream party at the doctor's

25:48

office and tell the drug's efficacy

25:50

between bites. The

25:52

new drug worked wonders on kids with autism. The sales

25:54

team claimed, even ADHD,

25:57

OCD, mood disorders, behavioral

25:59

issues you name at one

26:01

dose

26:01

of RISPER doll and your child will be

26:03

staring at birds for hours. According

26:06

to

26:06

Stephen Brill at the Huffington

26:09

Post Jansen executives told its sales team that

26:11

the company's highest priority was

26:13

expanding the child and adolescent

26:15

markets for Risperdal. One

26:18

year, Johnson even had a back school marketing

26:20

campaign where a manager

26:22

suggested they include lollipops and small

26:24

toys and sample packs of

26:26

the drug. All

26:27

of these tactics were effective.

26:30

By the end of nineteen ninety nine,

26:32

almost twenty percent of risperdal sales

26:34

came from off label prescriptions that

26:36

children Some as young as four years old.

26:38

Twenty five percent of sales belonged to the

26:41

senior market. That

26:42

meant that almost half of Risperdal's

26:44

sales were to users which the drug

26:46

had not been approved. Over

26:48

the next five years, Johnson and

26:50

Johnson's promotional efforts in those forbidden markets

26:52

only increased, and

26:54

it was paying off. By two thousand

26:56

four, Risperdal was earning three billion dollars

26:58

a year for the company with over

27:00

ten million prescriptions worldwide.

27:02

Also,

27:03

by then, there was mounting evidence

27:05

that Risperdal had potentially serious

27:07

side effects that Johnson and Johnson had

27:09

failed to clarify. At the same

27:11

time, the company had advertised that

27:13

its new medication was safer than similar

27:15

drugs, which it had been expressly

27:17

warned not to do. In two

27:19

thousand and

27:19

three, the FDA directed Janssen Pharmaceuticals

27:22

to update the drug's label to warn

27:24

about the increased risk of diabetes

27:27

and strokes as a result of taking

27:29

Risperdal. Janssen complied

27:31

and updated Risperdal's label,

27:33

but continued to aggressively promote the

27:35

drug in ways that minimize the risk

27:37

of potential complications. The

27:39

FDA was not amused. So

27:41

in July two thousand four, Janssen

27:44

Pharmaceuticals sent out a two page letter

27:46

to doctors to elaborate on the drug

27:48

side effects. Less

27:49

than a year later, the Food and

27:51

Drug Administration announced their brisperdal and

27:54

similar antipsychotic were being linked to deaths

27:56

and older patients with dementia. The

27:58

agency

27:58

analyzed the results of

27:59

seventeen placebo controlled trials

28:02

involving the drugs and found that elderly

28:04

patients with dementia who were given the

28:06

pills were one point six to one point

28:08

seven times more likely to die

28:10

than those given placebos. Risperdal

28:13

and other drugs like it would now be required to

28:15

feature a black box warning,

28:17

the FDA's most severe.

28:20

But that

28:20

didn't stop the FDA from approving Risper

28:22

doll for other uses besides schizophrenia,

28:25

which Johnson and Johnson have been pressuring

28:27

the agency to do since day one.

28:30

On October six

28:30

two thousand six, Risper

28:32

doll's label was changed again to

28:35

include treatment for, quote, your

28:37

ability associated with the

28:39

autistic disorder in children and

28:41

adolescents. As a result,

28:42

Janssen could now legally market

28:44

the product of patients who had already

28:46

been taking it for years.

28:49

The side effects

28:49

of the new label didn't change

28:51

much, drowsiness,

28:52

fatigue, increase in appetite,

28:55

anxiety, nausea, dizziness, dry mouth,

28:57

tremor, and rash, However, there was

28:59

one update that Jansen tried to

29:01

sneak by. Once taking

29:03

risk

29:03

at all, John's mom says he became

29:06

aggressive sleepy and developed

29:08

bowel problems. But the biggest

29:10

shot came when he was fourteen

29:12

and started developing women's

29:14

breasts These photos show

29:16

John's out of control breast growth.

29:18

It turns out, Risperdal can increase

29:20

production of a hormone called prolactin,

29:22

which stimulates breast growth. It's

29:24

called Gynacamastia and it's

29:27

irreversible.

29:27

Risperdal's new label warned

29:29

of a two point three percent

29:31

rate of Gynacamastia The old label

29:33

had simply listed the risk as rare,

29:36

which in

29:36

FDA language means less than zero

29:39

point one percent. However,

29:41

according to an internal Johnson

29:43

and Johnson study from two thousand,

29:45

the

29:45

actual rate at which elevated levels

29:47

of prolactin and Risperdal led

29:50

to breast formation in young

29:52

boys was as high as five

29:54

point five percent.

29:55

Johnson and Johnson never divulged

29:58

that number. not

29:58

to the FDA,

29:59

not to the doctors, not to the

30:02

patients.

30:02

Instead, the company covered it up by combining

30:04

multiple studies to water

30:06

down the The new

30:07

numbers included patients who had only been taking a

30:09

RISPR doll for short periods. Johnson

30:11

and Johnson knew that it took up to two months

30:13

for the breast to start developing. Johnson

30:16

and

30:16

Johnson did not care.

30:18

They

30:18

marketed and sold Brisberg all the

30:20

children anyway, fully aware of

30:23

what could happen.

30:27

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THOUSANDS OF PEOPLE, INCLUDING

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31:41

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31:43

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31:45

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31:59

One evening, in October two thousand

32:02

eleven, Benita Pleasure was sitting in

32:04

her living room in Lordsbyella Emma

32:06

when a commercial on TV made her burst

32:08

into tears. It was for a

32:10

personal injury law firm describing

32:12

something called Gynaecomastia. female

32:15

breast tissue growth in males as a

32:17

result of taking the medication Risper

32:20

doll. Bonita

32:20

Pleasure's son, Austin, that had

32:22

been prescribed Risperdal back in two thousand two when he

32:25

was eight years old. Austin had

32:27

been diagnosed with autism when he

32:29

was five. his frequent meltdowns

32:31

as Benito described and forced her to

32:33

take Austin out of school.

32:35

Benito

32:35

Pleasure was desperate to find relief

32:38

for her son She readily admits

32:40

that Risperdal helped to stabilize his

32:42

condition, but it wasn't

32:43

a cure all by any means. Austin

32:45

would still throw things sometimes

32:48

Sometimes he would hit himself, but the

32:50

edges of his moods were a little less

32:52

sharp if that makes any sense.

32:54

On

32:54

than pleasure was given at least a quarter of a gram

32:56

of Risperdal twice a day for five

32:59

years straight. But Nida watched

33:01

her son transform physically

33:03

almost immediately. the

33:05

pediatrician had warned her that risperdal

33:07

might have to set some weight gain, but

33:09

Benita thought the risk was worth it if it

33:11

would improve Austin's overall quality

33:13

of life. Also, at the

33:15

time, Benita was confident she could

33:17

maintain Austin's weight with a healthy diet and

33:19

exercise, but it soon became

33:21

apparent that nothing she could do

33:23

would work. Every time Austin

33:25

saw a doctor, his dosage was

33:27

increased and every time his dosage was

33:29

increased, he gained another twenty pounds,

33:31

but it didn't seem like normal weight

33:33

It was unevenly distributed. Austin was

33:35

top heavy now. Benita had noticed

33:37

that

33:37

he had, quote, started getting heavy around

33:40

his nipples. Around

33:42

two thousand six, when Austin was about

33:45

thirteen years old, Badida Pleasure

33:47

switched doctors who soon prescribed a

33:49

different medication. The

33:50

way gained stopped, but the damage was

33:53

irreversible. By the time he was

33:55

seventeen years old, Austin Pleasure had

33:57

grown forty six double d

33:59

breasts. his self confidence was shattered.

34:01

He

34:01

felt so ashamed of his body.

34:04

But neither Pletcher never had an inkling

34:06

that such a side effect was possible, until

34:08

she saw that commercial years later. After all the

34:11

doctor appointments

34:11

and pharmacy visits, nobody had ever

34:13

warned her

34:14

about Gynaecomastia.

34:17

There was

34:17

a warning on the label, but back when often

34:19

first started taking Risperdal. It listed

34:21

the chances of gynecomastia

34:24

as rare. That warning was begging to be ignored by

34:26

doctors and patients alike,

34:28

and now the only

34:29

solution Benita had learned was

34:31

a double mastectomy. That's

34:33

not something

34:33

she could ever envision putting Austin

34:36

through. We

34:36

couldn't possibly understand. But

34:39

neither Pleasure collected herself and

34:41

picked up the phone. The law

34:43

firm on the other hand asked for a photograph of a

34:45

shirtless Austin. Yes. You definitely have

34:47

a case. Bonita

34:50

was informed. was informed pledgers

34:52

weren't the only ones. Thousands of other patients and parents

34:54

have already lined up to sue. Attorney

34:58

Steven Sheller is

34:58

suing Jansen, which makes risperdal.

35:02

He claims Janssen marketed risperdal for unapproved uses

35:04

in children downplayed serious risks

35:07

like diabetes and seizures, and

35:10

breast growth wasn't even mentioned under warnings, but was buried

35:13

under precautions in obscure terms.

35:15

Shella represents John and

35:17

nine other boys including

35:19

this one who was only four when he

35:21

developed a breast on one side and

35:24

began producing milk.

35:25

Johnson and Johnson was

35:27

also facing claims from former Johnson employees turned

35:29

whistleblower's like Victoria Starr, a former sales

35:32

representative. She sued the company in

35:34

April two

35:36

thousand four. alleging that Johnson and Johnson had illegally promoted risk

35:38

for all the children. She also revealed

35:40

the sales of that specific medication,

35:42

accounted for seventy percent of

35:44

employee bonuses. Judy

35:46

Dodoril and

35:47

Camille Mcgowan, also former sales

35:49

representative at Jansen, decided to blow

35:51

the whistle after being stonewalled by

35:53

upper management about

35:56

their similar concerns about marketing the children. All

35:58

of the whistleblower's five in

35:59

total collected and delivered thousands of

36:02

documents to federal investigators

36:04

before quoting

36:06

their jobs Judy Dottoro even wore

36:07

a wire to a Jansen sales

36:09

conference that felt good doing the

36:11

right thing for once. All

36:14

of them were disgusted with the company they used to

36:17

work for. The amount

36:19

of

36:19

evidence was overwhelming. So in addition

36:21

to

36:21

the whistleblower lawsuits, the

36:23

federal government also launched a criminal investigation

36:26

into Johnson and Johnson. It

36:28

was a lot to untangle, but

36:30

investigators caught a break in January two

36:32

thousand ten. When Curtis

36:34

j Barry, Jenson's former

36:36

Risper doll product director

36:38

came forward to tell law and make sense

36:40

of it Still, the investigation would take years to

36:42

complete. Meanwhile,

36:44

attorneys general

36:44

in almost every state in the

36:47

union were preparing lawsuits against

36:50

Johnson's and Johnson for promoting risk for golfer use as it did not have

36:52

approval for and for minimizing or

36:54

conceiving the risk associated with the

36:58

drug. Some states were looking to recoup what they've been duped into

37:00

paying for the named branded medicine when they

37:02

could have purchased the cheaper and just

37:04

as effective generic versions instead

37:07

There had also been

37:08

a growing course of complaints about

37:11

antipsychotics being overprescribed in children.

37:13

According to the New York

37:15

Times, Prescription rates for drugs like Risperdal

37:17

have increased more than five fold for

37:19

children over a fifteen

37:22

year span. A

37:22

congressional investigation back in November two thousand eight had revealed

37:24

that Johnson and Johnson funded a research

37:27

center at Massachusetts General

37:29

Hospital in Boston There

37:31

was evidence that doctor Joseph Biederman, a

37:34

world renowned child psychiatrist,

37:36

and prominent advocate of using

37:40

antipsychotic medicines who treat bipolar disorder in young children had

37:42

urged the company along.

37:44

According to internal Johnson and Johnson

37:48

emails, Doctor Biederman had approached the company multiple

37:50

times to propose the creation of a

37:52

research center that would, quote,

37:54

generate

37:55

and disseminate data supporting

37:57

the use of children adolescents.

37:59

Peterman promised the company that the goal of

38:01

the center would be

38:04

the, quote, move forward the commercial goals of J and

38:06

J. Risperidone is the

38:08

generic

38:08

name for Risperdal. Johnson

38:10

and Johnson liked

38:11

the idea. Not

38:14

only did they fully fund the Johnson and Johnson

38:16

Center for Pediatric psychopathology research

38:19

that Massachusetts General

38:22

Hospital, but the company also prepared

38:24

a draft summary of a study,

38:26

showcasing the benefits of respirator

38:28

treatment and children for which

38:30

doctor Biederman would take credit. Johnson

38:32

and Johnson just needed them to sign his name, and he

38:34

did. And for all

38:35

that hard work, doctor Joseph

38:38

Beederman received at least one point

38:40

six million and consulting

38:42

fees from Johnson and Johnson.

38:44

Yet he only reported two hundred thousand of

38:46

that income to Harvard University where

38:48

he worked. in an emailed

38:50

statement to The New York Times,

38:52

doctor Biederman said, my interests

38:54

are solely in the advancement of medical

38:56

treatment through rigorous and

38:58

objective study. and he said he took

39:00

conflict of interest policies,

39:02

quote, very seriously.

39:04

Doctor

39:04

Biederman's influence and effort have

39:07

unquestionably helped fuel the rapid rise in the use of antipsychotic

39:09

medicines in children. It was

39:11

all part of the plan. Johnson

39:13

and Johnson and Johnson and Johnson

39:16

Pharmaceuticals were able to squeeze billions of dollars

39:18

out of Risper doll before its

39:20

patent expired. Then the

39:22

company reinvented the drug in an

39:24

injectable form to squeeze out a little

39:26

more. Yet despite

39:28

the financial success, In addition to the

39:30

emerging RISPERDOL lawsuits, consumers

39:32

and investors were losing confidence

39:34

in the new Brunswick based health

39:37

care giant. for a multitude of other

39:39

reasons. The pharmaceutical

39:40

company accused of getting illegal kickbacks

39:42

has to cough up millions of dollars,

39:45

Cincinnati based Omnicare is accused of

39:47

steering people on Medicaid to by a specific manufacturer

39:50

and away from competing manufacturer.

39:52

In November

39:55

two thousand nine, Omnicare, the Cincinnati chain that

39:57

managed the pharmacies at nursing homes,

39:59

paid

39:59

ninety eight

40:02

million dollars to settle accusations that they received kickbacks from

40:04

Johnson and Johnson. The

40:06

following year, the Securities and Exchange Commission

40:08

charged J and J with bribing

40:10

foreign doctors to use their

40:12

medical devices. The company

40:14

later avoided criminal charges by

40:16

paying a seventy million

40:18

dollar fine. Oh,

40:19

and those medical devices, Johnson and Johnson was pushing so hard turned

40:21

out to be defective. There were

40:23

massive potential liabilities

40:24

on the

40:26

horizon related to its metal

40:28

on metal hip implant. And there

40:30

were rumors on Wall Street that Moore would follow

40:32

because of the Johnson and Johnson

40:34

subsidiary branded transvaginal mesh, there was crippling women

40:37

all over the world. Not to

40:39

mention the massive recall of children's

40:41

medicines in two thousand ten, that

40:43

cost the company six hundred million dollars for which

40:46

now the company's shareholders were suing

40:48

Johnson and Johnson to

40:50

recover.

40:50

What's next? you going to tell me there's asbestos

40:52

in the baby powder? This

40:54

case is about holding the directors

40:57

accountable for the damage to

40:59

their bad faith action and inactions has

41:01

caused the company and its shareholders. The

41:03

shareholders noted in their lawsuit and

41:05

to ensure that the Johnson and Johnson

41:07

ship is rided. and

41:10

that it conducts its business in a law abiding manner

41:12

in the future. Planatives

41:14

in the upcoming RISPERDOL lawsuits had

41:18

similar goal. This case

41:20

is not just about

41:22

recovering money. It's about putting an end

41:24

to this kind

41:26

of misconduct. by

41:27

a drug company. Now a

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42:30

The

42:31

second one is

42:34

really understanding the global

42:36

impact of your decision. When you're

42:38

starting in one particular area and you have a

42:40

rather local impact, to today

42:42

where every decision you have

42:44

can have an impact globally.

42:46

You know, from Mumbai to

42:50

Minneapolis, from Warsaw,

42:52

you know, to Miami,

42:55

and always considering

42:58

what that true global impact of a particular decision

43:00

can be. A man like

43:02

Alex Gorsky understands how a

43:04

single decision can help make a global

43:08

impact Mister Gorsky

43:08

was president of Janssen Pharmaceuticals, while Risperdal

43:11

was being marketed to children and seniors

43:13

for half a dozen

43:16

years. That's why lawyers for plaintiff Aaron Banks were eager

43:18

to talk to him. Aaron

43:20

Banks was only nine years

43:21

old in two thousand. The year he was

43:24

prescribed was Perdol.

43:26

Banks claims that drugs caused him to

43:28

develop female breasts. He had

43:30

painful surgery to

43:32

remove them. Due to that psychological

43:33

trauma and physical torment, Aaron Banks

43:36

now twenty one years old, with

43:38

suing Johnson and Johnson in a

43:40

Philadelphia court,

43:42

That trial, which began in September twenty twelve, was

43:44

the first Risperdal personal injury case to

43:47

go in front of a jury. Johnson

43:50

Johnson

43:50

settled quickly after the first day

43:52

of testimony. None of which

43:54

came

43:54

from former Janssen president Alex

43:58

Gorgsky. Johnson

43:58

and Johnson had argued that mister Gorsky was too

43:59

far up the chain to have any knowledge of the

44:02

events in question

44:04

concerning Risperdal. There's no reason

44:06

for him to take the stand even

44:08

though during a deposition. Alex

44:10

Skorsky had admitted to signing the

44:12

initial check for doctor Biederman's

44:14

pediatric research center. The plaintiff's

44:16

lawyer also pointed out that Gorsky have

44:18

bragged about Rysperdal's sales numbers on his

44:20

resume. It kinda seemed like

44:21

he knew what was going

44:23

on. Too bad, it

44:24

wasn't going to happen. Johnson

44:26

and Johnson offered Aaron Banks enough

44:28

undisclosed amounts of money to

44:32

walk away. Clearly, the company was trying to avoid having Alex

44:34

Skorsky take the stand

44:36

presumably for two reasons. a, he

44:38

probably knew too much

44:40

and b, he had just

44:42

recently been promoted to CEO of

44:44

the entire corporation. And by

44:45

the time Alex Skorsky took over as

44:48

the new chief executive of Johnson and

44:50

Johnson on April twenty six, twenty

44:52

twelve. The company had already settled

44:54

several lawsuits with

44:56

several states related to what seemingly appeared to be his jansen

44:58

handy work. In two thousand

45:00

eleven, a

45:00

South Carolina judge alleged civil penalties

45:02

of three hundred twenty seven million dollars,

45:06

a good Johnson and Johnson for marketing Risperdolfer on

45:08

approved uses. Johnson and

45:10

Johnson

45:10

admitted no wrongdoing. Before that,

45:13

a jury in Louisiana ruled

45:15

that the company be able to state

45:17

two hundred fifty eight million dollars for misleading doctors. Johnson and

45:20

Johnson

45:20

admitted no wrongdoing.

45:23

On January nineteenth twenty twelve,

45:26

the company agreed to pay the state of Texas

45:28

one hundred and fifty eight million dollars

45:30

to settle a loss report improperly

45:32

influencing officials and schemed the profit

45:34

from the state's Medicaid program. That

45:36

case was

45:37

brought along by a former

45:39

invest to cater in the Pennsylvania inspector general's

45:41

office named Alan Jones. We

45:43

discovered suspicious payments for Johnson and Johnson

45:45

to Pennsylvania state officials When

45:47

Jones reported

45:48

those payments to his superiors, it

45:50

was taken off the case and the evidence was

45:52

buried. Ellen Jones'

45:53

continued investigation

45:56

uncovered a spread practice that included many other states,

45:58

including Texas, where Johnson and Johnson

46:00

was essentially

46:00

purchasing influence to make

46:02

drugs like Risper deputy default brand.

46:06

Johnson and

46:06

Johnson admitted no wrongdoing. In

46:09

April twenty twelve, the

46:10

state of Arkansas fined the company one

46:13

point two billion dollars for

46:15

nearly two hundred forty thousand violations of

46:17

the state's Medicaid fraud law. That

46:20

verdict

46:20

would later be

46:22

overturned. but

46:22

at the time it inspired Johnson and Johnson

46:24

to combine and settle lawsuits from thirty six other states,

46:26

which it did in August twenty

46:30

twelve for one hundred and eighty one million dollars.

46:32

Even after all that, the

46:34

litigation involving Risperdal was just

46:36

getting started. Johnson and Johnson's

46:38

still face thousands of civil

46:40

complaints from male patients with gynecomastia,

46:43

as well as

46:44

the big one. Criminal and civil

46:46

complaints from the federal government

46:48

related to the company's improper

46:50

marketing and kickbacks. The

46:52

latter case was settled on November fourth

46:54

twenty thirteen. We are here today to

46:57

announce that Johnson and Johnson and

46:59

three of its subsidiaries have agreed

47:01

to pay more than two point

47:03

two billion dollars to resolve criminal as well as civil claims

47:05

that they marketed prescription drugs

47:07

for uses that were never approved

47:09

as safe and

47:12

effective and that if they and

47:14

pharmacies for prescribing and

47:16

promoting these drugs. You

47:18

know, through these alleged acts

47:21

these companies line their pockets

47:23

at the expense of American

47:25

taxpayers, patients and private

47:28

insurance industry. they drove a

47:30

cost for everyone in the healthcare system negatively impacted the long

47:32

term solvency of central healthcare programs

47:36

like Medicare. Now, the settlement also addresses

47:38

allegations of conduct that

47:40

recklessly put at risk the health

47:42

of some of the most waffle

47:45

members of our society, including our children, the elderly,

47:47

and the disabled. You know,

47:49

this announcement marks

47:52

that another a step forward in our strategic, comprehensive

47:54

and effective approach to fraud

47:56

prevention. We can all

47:58

be encouraged

47:59

by the actions that we have taken and by

48:02

the results that we have obtained in recent

48:04

years. As

48:06

part

48:06

of the settlement, Johnson Johnson was forced

48:08

to admit that it had improperly promoted

48:10

Risperdal to older adults for

48:13

unapproved uses. However, the

48:14

company did not admit to

48:17

any wrongdoing related to marketing the drugs used to children. Door,

48:19

did Johnson and Johnson

48:20

acknowledge that it paid kickbacks to

48:23

doctors and pharmacists to prescribe

48:25

the medication nor would

48:28

any individual executives be

48:30

charged with the crime. That's

48:32

how

48:32

much innocence two point two billion

48:34

dollars by you. And at the end of the day,

48:36

there was a bargain. Unfortunately,

48:38

when you look at the scale

48:40

of the fraud involved, periods

48:44

stretching almost ten years, which was systematic,

48:46

in many cases directed from

48:49

management. And and then

48:51

you look at the find that was paid two point

48:53

two billion dollars that represents less than one half of

48:55

what the company made on the drug in

48:57

a single year.

48:59

and it represents probably one tenth of

49:01

what the company

49:02

made on the drug over over the course

49:04

of the wrongdoing. So

49:06

it's hardly a deterrent to

49:09

any future fraud.

49:11

According to the

49:14

Huffington Post, Johnson and Johnson

49:16

has never come forward with any information

49:18

that any of its employees were disciplined

49:20

or fired for legally promoting

49:24

RISPR doll. quite the opposite, in fact. In two thousand

49:26

fourteen, merely months after

49:28

settling with the federal government for two

49:30

point two

49:32

billion dollars, Johnson and Johnson's CEO, Alex Skorsky, was

49:34

given a forty eight percent pay

49:36

raise. His annual compensation was

49:38

up to twenty five

49:40

million dollars In

49:42

January twenty

49:43

fifteen, the first of

49:45

ten thousand Risperdal personal entry lawsuits

49:47

that go to trial Blanca Austin

49:49

Pleasure, the now twenty year old with forty six double

49:51

d breasts. But neither Pleasure,

49:54

his

49:54

mother, and her legal sought

49:57

to prove that Janssen, quote, have

49:59

discovered

49:59

a significant risk of

50:02

gynecomastia among boys who ingested respiratory distress

50:04

for eight to twelve weeks and had demonstrated

50:06

elevated prolactin levels while taking

50:08

the drug. But according to

50:10

the pledges, despite Johnson and

50:12

Johnson knowing that information, It

50:14

did not communicate that risk to the FDA or doctors

50:17

prescribing Risperdal. The Philadelphia

50:19

jury concluded

50:20

that Austin been

50:22

adequately warned about the antipsychotic side

50:24

effects, and he was awarded two

50:26

point five million dollars in damages

50:29

This is his mom Benita Pleasure in

50:31

an interview with the Huffington

50:34

Post.

50:34

I was

50:35

not angry with J and

50:37

J. I went into it very nicely knowing

50:40

that the medicine caused the

50:42

diagonia, but not

50:44

quite grasping their

50:46

knowledge. That was the part that upset me.

50:48

Most

50:48

when it finally hit me,

50:50

Johnson and Johnson knew they knew

50:52

what they were doing to my child.

50:55

They don't

50:57

care about Austin Pleasure. That's

50:59

ugly to say, but it's it was

51:01

just a game to them.

51:03

It felt like A

51:05

spokeswoman for Janssen said the company was, quote, disappointed and believe

51:07

that Austin Pleasure's verdict

51:09

should be overturned. The

51:11

company claims that Risperdal side effects were clearly

51:14

communicated the pleasure, his family, and

51:16

the prescribing doctor. And that

51:18

when you really think

51:20

about Boston Pleasure's, quote, quality of life was

51:22

significantly improved while it was taking

51:24

Risperdal. In the second

51:26

trial,

51:26

which took place in March twenty fifteen,

51:29

A jury found that Johnson and Johnson

51:31

did negligently fail to adequately

51:33

warn healthcare providers of the extent of the

51:35

risk of gynecomastia stemming from

51:37

the use of Risperdal. But they did

51:40

not find the company's negligence, a

51:42

substantial factor in bringing about

51:44

the plaintiff's

51:46

Ghana Comastia. As a result, no damages were

51:48

awarded. It was a rare win for Johnson and

51:50

Johnson. Many chalked up

51:52

to an

51:54

unsympathetic plaintiff an autistic man who had been known to kill

51:56

cats. Several more respiratory

51:58

diseases were

51:58

heard over the next

51:59

few years. The verdicts

52:02

were unpredictable. Some

52:04

were dismissed, others were confidentially settled.

52:06

But most cases, Johnson

52:08

and Johnson and Johnson lost

52:11

They were ordered to pay settlements ranging from

52:13

half a million dollars to eight

52:15

billion dollars. Well, Johnson and Johnson,

52:17

of course, is no ranges to

52:19

the courtroom with investors bracing for headlines

52:21

about its cases involving both talc

52:24

powder and opioids, but the news late

52:26

yesterday was unexpected. A Philadelphia

52:28

jury said J and J must pay eight billion

52:30

dollars in punitive damages in a case

52:32

involving

52:32

its antipsychotic drug, WhisperDoll. That

52:35

eight billion dollar verdict awarded to

52:37

a twenty six year old Maryland man

52:39

who grew breasts was later reduced to

52:41

six point eight million in

52:43

January twenty twenty. Less than

52:44

two years later, Johnson and Johnson settled substantially all of

52:47

the remaining personal injury lawsuits,

52:49

roughly nine thousand of

52:52

for a total of eight hundred million dollars.

52:54

Again, if you do

52:55

the math, for Johnson and Johnson

52:57

and Johnson Pharmaceuticals, it

52:59

was worth it. Today,

53:01

Johnson and Johnson is worth more than four

53:03

hundred billion dollars. Its

53:06

CEO, Alex Skorsky, has been honored

53:08

with social

53:10

responsibility awards has been called a man

53:12

of integrity. And Jackson Pharmaceuticals, according to their leader,

53:14

has been very

53:15

busy.

53:17

The last week, I

53:19

was privileged enough to witness some of

53:21

the very first residents

53:24

in our home state in New

53:26

Jersey receiving doses of

53:28

our vaccines just thirteen months.

53:30

Thirteen months after we started the

53:32

development process. And when

53:34

one of the residents this

53:37

senior apartment was asked how she felt after her she

53:39

after her she was given the

53:42

shot, she looked at me and

53:44

replied safe. I

53:46

couldn't be I couldn't be more proud. Whoops. Looks

53:49

like around the

53:52

time.

53:52

So long

53:54

everybody.

53:54

the long everybody until next time.

53:56

Take care of each

53:57

other and take care

53:59

of

53:59

yourself.

54:02

Swaddled his written

54:02

research produced and hosted by

54:05

me a concerned citizen with the original music

54:07

by Trevor Howard, aka the

54:09

former, aka the pinnacle.

54:12

For more

54:12

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54:14

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55:28

the Thanks

55:29

for listening.

55:33

Hi. My name

55:35

is Richard DeVeer

55:38

from that city

55:40

with a real famous suicide bridge. My

55:42

name is Riley from New Bedford.

55:43

Hello. My name is Michelle from Yardley,

55:46

Pennsylvania.

55:47

I'm concerned Susan. And

55:49

a valued listener. As a valued listener.

55:53

And the

55:54

Swindon narrator as

55:57

the sexiest voice in the

55:57

podcast universe.