Johnson & Johnson (NYSE: JNJ) on Friday said that it plans to take a special charge of $600 million in the second quarter in order to boost its reserves for a possible settlement of civil lawsuits related to Risperdal, Invega, Natrecor and Omnicare.
The charge would fund potential settlements for litigation involving marketing of Invega and Risperdal, which are treatments for schizophrenia, and Natrecor, which is a treatment for congestive heart failure.
The New Brunswick-based company is also setting aside funds for potential settlements linked to Omnicare, a pharmacy operator providing medicines to patients in nursing homes and long-term care facilities. JNJ has been accused of making illegal payments to Omnicare to purchase and recommend Risperdal to its patients.
Johnson & Johnson has been facing a number of lawsuits from states alleging that the company improperly marketed Risperdal to patients for conditions it was not approved by U.S. regulators.
JNJ already took a hefty charge in the fourth quarter of 2011 related to ongoing Risperdal lawsuits and investigations. The company is being investigated by the U.S. Department of Justice for allegations that it marketed Risperdal for unapproved uses. The investigations have been going on for years.
Johnson & Johnson shares ended marginally higher on Friday. The stock rose 0.29% to finish the day at $62.98, touching an intra-day high of $63.04.
JNJ shares have fallen 3.96% so far this year, compared with a gain of 5.41% for the S&P 500.
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