Why Johnson & Johnson Is Paying the Department of Justice Billions

By Dave Williamson and Alison Southwick – Nov 10, 2013 at 8:30PM

NYSE: JNJ

Johnson & Johnson

Market Cap

$360B

Today's Change

(-0.96%) -$1.44

Current Price

$148.12

Price as of April 24, 2024, 12:18 p.m. ET

Here's what's behind Johnson & Johnson's colossal $2.2 billion settlement.

From the smallest biotech to the biggest pharmaceutical stock The Motley Fool's Market Check-Up covers the health-care sector's biggest headlines, hottest market movers, and Obamacare's ongoing rollout.

In this segment, health-care analyst David Williamson discusses Johnson & Johnson's (JNJ -0.96%) massive $2.2 billion settlement with the Department of Justice, amid allegations that the company gave its sales representatives incentive to market the company's antipsychotic drug Risperdal for off-label sales. David looks at just how common these types of allegations and settlements are, and says that despite the worrying headlines, investors shouldn't be concerned.

Alison Southwick has no position in any stocks mentioned. David Williamson owns shares of Pfizer, Abbott Labs, And Johnson & Johnson. Follow David on Twitter: @MotleyDavid.

The Motley Fool recommends and owns shares of Johnson & Johnson. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.