The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across Texas this week.
Abbott & Texas Sue Johnson & Johnson for Millions & Millions
The trial for Texas’ lawsuit against Johnson & Johnson began this week, spearheaded by Attorney General Greg Abbott. The state accuses Janssen Pharmaceuticals, a J&J subsidiary, of fraudulent marketing practices and bribery in order to boost sales of its antipsychotic drug Risperdal. Abbott claims the company illegally marketed the drug to children and the elderly, and that it “downplayed the risks of Risperdal, despite FDA admonishments,” BusinessWeek reported.
The Bottom Line: Part of the case against Janssen is based on a 2004 investigation that found evidence the company paid state mental health officials $340,000 to promote Risperdal as a “preferred drug” in a public health program. J&J’s defense attorneys claim there is no evidence the officials “did anything differently as a result