This case is an action brought against the pharmaceutical company Janssen by the State of Arkansas under the state’s Medicaid fraud and unfair trade practices laws. The claims are based on Janssen’s marketing of the antipsychotic drug Risperdal without adequate warnings about risks posed by the drug, including weight gain and diabetes. An Arkansas trial court ruled for the state and imposed penalties on Janssen exceeding $1 billion. Janssen has appealed to the Arkansas Supreme Court, raising a variety of statutory and constitutional objections to the judgment, including the argument that the state’s claims are impliedly preempted by FDA regulation of prescription drugs. In support of the state, Public Citizen filed an amicus curiae brief demonstrating that the Supreme Court’s decision in Buckman v. Plaintiffs’ Legal Committee, which held claims of “fraud on the FDA” to be preempted by federal law, does not apply to the claims asserted by Arkansas in this case.
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