Governor Cuomo Announces Insurance Fraud Action Against Johnson & Johnson for Leading Role in the Opioid Crisis | Governor Andrew M. Cuomo Skip to main content September 17, 2020

Albany, NY

Part of DFS Action to Recover $2 Billion in Insurance Premium Overcharges for Defrauded New Yorkers

DFS Claim Alleges Johnson & Johnson Fraudulently Mischaracterized theSafety and Efficacyof Opioid Drugs to Expand the Opioid Market, Serving to Promote Both Its Own Opioid Drugs and Opioid Raw Material Business, Spread the Opioid Crisis, and Cause Dramatically Increased Health Insurance Costs for NY Consumers

Read the DFS Statement of Charges for Johnson & Johnson and Related CompaniesHere

Governor Andrew M. Cuomo today announced the Department of Financial Services has filed charges and initiated administrative proceedings againstJohnson & Johnsonand its subsidiariesJanssen Pharmaceutica, Inc., Janssen Pharmaceuticals, Inc., and Ortho-McNeil-Janssen Pharmaceuticals, Inc. - collectively, "Johnson & Johnson."These charges are the fourth set to be filed against opioid manufacturers arising from theongoing DFS investigationinto the creators and perpetrators of the opioid crisis.

"The opioid crisis has taken too many lives and New York State will continue to take action against thosewho helped fuel this public health catastrophe and bring a measure of justice to families who havelost loved ones,"Governor Cuomo said. "Misrepresentation ofopioidsto consumers for profit is inexcusable and we will use every tool necessary to help ensure those responsible are held fully accountable."

Superintendent of Financial Services Linda A. Lacewell said, "The opioid crisis has had a devastating impact on individuals, families, and communities across the nation. DFS remains committed to protecting New York consumers and ensuring the integrity of the insurance industry."

Johnson & Johnson manufactured a number of opioid products in New York State, most notablySchedule II drugs Duragesic, a fentanyl patch, and Nucynta, a tapentadol drug. In addition, Johnson & Johnson controlled a large portion of the raw opioid supply chain through its patented "Norman Poppy," which at one point was responsible for up to 80% of the global supply for oxycodone raw materials.

The DFS Statement of Charges alleges that the Johnson & Johnson Respondents have had a long-standing and multi-faceted leading role in originating, supplying, facilitating, and actively creating a dangerous market foropioidsfor chronic pain treatment. Their efforts not only supported sales of their own brandedopioidsbut also established under false and fraudulent pretenses an environment that amplified the medical community's acceptance of opioid prescribing, thereby increasing demand for its opioid-related raw materials.

DFS's allegations against the Johnson & Johnson Respondents include the following:

According to the DFS Statement of Charges, the Johnson & Johnson Respondents violated two New YorkInsurance Laws. Section 403 of the New YorkInsurance Law prohibits fraudulentinsurance acts and carries with it penalties of up to $5,000 plus the amount of the fraudulent claim for each violation; DFS alleges that each fraudulent prescription constitutes a separate violation. Section 408 of the Financial Services Law prohibitsintentional fraud or intentional misrepresentation of a material fact with respect to a financial product or service, which includes healthinsurance and carries with it penalties of up to $5,000 per violation; once again,DFS alleges that each fraudulent prescription constitutes a separate violation.

The hearing will be held at the office of the New York State Department of Financial Services, One State Street, New York, New York, beginning on January 25, 2021.

Read a copy of the DFS Statement of Charges for Johnson & Johnson and related companies on the DFSwebsite.

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Governor Cuomo Announces Insurance Fraud Action Against Johnson & Johnson for Leading Role in the Opioid Crisis - ny.gov