22 Jul, 2011

US Judge dismisses RICO claims against J&J

A US federal judge has dismissed against pharmaceutical giant Johnson & Johnson, in a consumer fraud and RICO suit, which alleged the company of an attempted hiding of manufacturing and quality control problems, leading to recalls of over-the-counter medicines and drugs such as Tylenol, Motrin, Zyrtec, Benadryl, Rolaids and Mylanta, according to The Legal Intelligencer.

J&J and its subsidiary, McNeil Consumer Healthcare, were accused in the lawsuit of a conspiracy to conceal quality control issues and to avoid their duty of refunding customers.

However, US District Judge Mary A. McLaughlin concluded the consumers lacked standing because none of the named plaintiffs were able to point to any ‘injury-in-fact’ resulting from their purchases of the products.

McLaughlin found that a plaintiff ‘must still allege some form of specific injury, even if small, in order to survive a motion to dismiss for lack of standing’.

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