People of the State of California v. Johnson & Johnson et al.

Unfair competition, False advertising

San Diego County

Superior Court Judge Eddie C. Sturgeon

$344 million

Jinsock Ohta

Plaintiff's Lawyers: California attorney general's office, Jinsook Ohta, Jon F. Worm, Adelina R. Acuña, Laurel M. Carnes, Tina Charoenpong, Joanna B. Hull, Devin W. Mauney, Daniel A. Osborn, Gabriel J. Schaeffer, Monica Zi

Defense Lawyers: O'Melveny & Myers LLP, Stephen D. Brody, Mattie F. Hutton, Jason M. Zarrow; Covington & Burling LLP, Carolyn J. Kubota

A San Diego County judge ordered Johnson & Johnson to pay nearly $344 million in civil penalties for false and deceptive marketing of its pelvic mesh product.

The decision is believed to be both the largest total civil penalty and largest per-violation penalty ever imposed under the unfair competition or false advertising law.

The California Department of Justice secured the judgment in January 2020 following a thorough investigation, three years of litigation, and a nine-week bench trial in 2019 conducted by Superior Court Judge Eddie C. Sturgeon.

In his 128-page decision, Sturgeon said Johnson & Johnson knowingly omitted information about the potential health risks of the pelvic mesh products, which were implanted in millions of women to treat pelvic organ prolapse and stress urinary incontinence but later caused a variety of medical complications.

The attorney general's legal team obtained a penalty award of $343.9 million; $1,250 penalty for each of 153,351 Unfair Competition Law violations and 121,844 False Advertising Law violations.

The lead attorneys were former Supervising Deputy Attorney General Jinsook Ohta, Supervising Deputy Attorney General Jon F. Worm; and Deputy Attorneys General Adelina R. Acuña, Laurel M. Carnes, Tina Charoenpong, Joanna B. Hull, Devin W. Mauney, Daniel A. Osborn, Gabriel J. Schaeffer and Monica Zi.

Adelina Acuna

"The Attorney General's Office is proud of this case," a spokesperson for the California Department of Justice said in an email to the Daily Journal. "It underscores the willingness and ability of our office to go to trial against well-resourced opponents, including one of the world's largest corporations."

"Our prosecution of this case also sends a clear message -- patients and doctors have a right to accurate information from companies that make and sell medical devices," the statement continues. "J&J and its Ethicon subsidiaries have been held accountable for violating that trust."

The office said the ruling was the first time a court has found Johnson & Johnson engaged in false and deceptive business practices. People of the State of California v. Johnson & Johnson 37-2016-00017229 (San Diego Sup., Ct, filed May 24, 2016).

Following the judgment, Johnson & Johnson said the company "empathizes with women who suffer from pelvic organ prolapse and stress urinary incontinence," in a public statement.

Company subsidiaries Ethicon and Ethicon US LLC also violated California Unfair Competition Law and False Advertising Law, Sturgeon ruled.

The attorney general's office sued Johnson & Johnson in 2016, arguing that between 2008 and 2014 it sold more than 470,000 mesh products, including more than 30,000 in California. Johnson & Johnson faced some 35,000 personal injury lawsuits regarding the product.

After Sturgeon entered judgment in January 2020, Johnson & Johnson appealed to the 4th District Court of Appeal. The case has not yet been briefed.

-- Blaise Scemama