Lawsuits can get ugly and even if you have financials to fight a legal battle one could easily be grounded if the prosecution is fair. Johnson & Johnson was notified by 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 stated in a regulatory filing on Monday.
The company claimed that the subpoenas were related to anti-diversion policies and procedures and the distribution of its opioid medications developed by its Janssen pharmaceuticals unit.
The firm believes that the investigation relates to monitoring and reporting programs by manufacturers and distributors of opioids under the Controlled Substances Act.
According to Reuters, J&J reported in a press release that “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 Attorney’s Office for the Eastern District of New York.”
J&J revealed that 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.
The FMCG, last week lowered its previously reported third-quarter profit to account for a proposed $4 billion cash settlement related to the opioid crisis.
Worldwide drug industry faces roughly 2,600 lawsuits brought by state and local governments, hospitals and other entities seeking to hold drug makers and distributors responsible for the toll of opioid abuse.