🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Justice Department issues grand jury subpoenas in J&J opioid probe: filing

Published 10/28/2019, 08:59 PM
© Reuters. FILE PHOTO: The company logo for Johnson & Johnson is displayed on a screen to celebrate the 75th anniversary of the company's listing at the NYSE in New York
CAH
-
MCK
-
COR
-
JNJ
-

CHICAGO (Reuters) - Johnson & Johnson (N:JNJ) received grand jury subpoenas in August from the U.S. attorney's office for the Eastern District of New York related to its opioid medication policies, the company said in a regulatory filing on Monday.

J&J said the subpoenas were related to anti-diversion policies and procedures and the distribution of its opioid medications developed by its Janssen pharmaceuticals unit.

The company said in the filing it believes the investigation relates to monitoring and reporting programs by manufacturers and distributors of opioids under the Controlled Substances Act.

"Like other companies that have manufactured opioid medications, Janssen has received subpoenas and investigative demands from various government entities, and this includes the August 2019 subpoena from the United States Attorneys Office for the Eastern District of New York," the company said in a statement emailed to Reuters.

J&J said it understands the subpoenas are part of a "broader, industry-wide investigation" and said the company believes its anti-diversion policies and procedures complied with the law.

Johnson & Johnson last week lowered its previously reported third-quarter profit to account for a proposed $4 billion cash settlement related to the opioid crisis.

That followed a Reuters report citing sources that drug distributors McKesson Corp (N:MCK), AmerisourceBergen Corp (N:ABC) and Cardinal Health (N:CAH) had offered to pay $18billion in cash over 18 years, while J&J would pay $4 billion in cash.

The drug industry faces roughly 2,600 lawsuits brought bystate and local governments, hospitals and other entities seeking to hold drugmakers and distributors responsible for the toll of opioid abuse.

© Reuters. FILE PHOTO: The company logo for Johnson & Johnson is displayed on a screen to celebrate the 75th anniversary of the company's listing at the NYSE in New York

In August, an Oklahoma judge ordered J&J to pay $572.1 million to the state for its part in fueling an opioid epidemic, a sum that was substantially less than investors had expected.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.