Idaho Nets Settlements With Pharmaceutical Giant, E-Book Publishers

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Idaho Attorney General Lawrence Wasden announced two major settlements today regarding two very different industries.

As part of a 37-state agreement, Janssen Pharmaceuticals, a subsidiary of pharmaceutical giant Johnson and Johnson, has agreed to pay more than $2.8 million to Idaho, resolving claims that Janssen improperly marketed the antipsychotic drugs Risperdal, Risperdal Consta, Risperdal M-Tab and Invega.

Idaho and 36 other states alleged that Janssen engaged in deceptive practices by marketing Risperdal, targeting patients with Alzheimer's disease, dementia, depression and anxiety. Janssen admitted to no wrongdoing in the settlement.

Additionally, Wasden announced that Idaho consumers are expected to receive up to $347,000 in restitution as a result of an antitrust settlement with three of the largest book publishers in the nation. The settlement resolves allegations that publishers HarperCollins, Simon & Schuster, and Hachette participated in an unlawful conspiracy to fix the prices of e-books. Three more defendants, McMillan, Penguin and Apple, are still slated for trial in June 2013.

Under the terms of the agreement, the three publishers will compensate consumers who purchased e-books between April 1, 2010, and May 21, 2012. Payments will begin 30 days after court approval of the settlement becomes final. Most consumers will automatically receive credits to their Kindle, Nook or iBookstore accounts.

“Today’s settlement with three publishers paves the way for restitution payments to consumers harmed by the scheme," said Wasden. "In addition, the settlement will restore competition in the e-book market by promoting competition among retailers.”