Massive Judgment Against Ethicon Upheld

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A California state appeals court has upheld almost all of a massive $344 million civil penalty judgment against Johnson & Johnson’s Ethicon unit awarded in a bench trial for circulating misleading instructions about its transvaginal pelvic mesh products. Legal Newsline reports the appeals court only struck $42 million in penalties for oral marketing communications, saying there was no evidence of what Ethicon employees and agents said in any oral communications. However, Ethicon is left with a $302,037,500 bill to pay in the civil penalties the court upheld.

Legal Newsline says the Washington Legal Foundation said the penalty is larger than all other reported California awards combined. It also maintained that Ethicon’s statements accurately described the results of scientific studies as the company urged healthcare providers to prescribe its mesh products.

In 2008 FDA warned of complications experienced by women who were prescribed the product to help with stress urinary incontinence and pelvic organ prolapse. Thousands of personal injury lawsuits have been filed alleging pain, urinary problems, and bowel, bladder, and blood vessel perforation.

The case involved company communications including instructions for use, marketing to California doctors, and marketing to California patients. The trial court ruled that the communications violated state unfair competition and advertising laws and said Ethicon’s behavior over 17 years was “grave” and “egregious.” The judge said he believed the $344 million judgment was fair, given that it represented less than 1% of J&J’s net worth. The appeals court mostly backed the trial judge’s reasoning, Legal Newsline says, noting the trial court “prepared a 23-page violations appendix cataloging the precise manner by which each and every written or online marketing communication was likely to deceive doctors.”

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