Johnson & Johnson Faces Legal Challenge Over Employee Drug Costs

Johnson & Johnson is currently embroiled in a legal battle that could have significant implications for how companies manage employee benefits related to drug costs. A lawsuit filed in a New Jersey federal court by Ann Lewandowski alleges that employees of Johnson
& Johnson were overcharged for prescription medications due to the company’s contractual arrangements with Express Scripts, a prominent pharmacy benefits manager.

Allegations of Overcharging and Mismanagement

Lewandowski, representing a proposed class of affected employees, claims that Johnson & Johnson did not exercise proper care in their selection and negotiation processes with Express Scripts, potentially leading to inflated drug prices for employees. Her lawsuit, filed in February, accuses Johnson & Johnson of failing to secure more favorable terms that could have resulted in lower drug prices under the company’s employee health plan.

Johnson & Johnson, however, argues that the lawsuit fails to provide a comprehensive view of the drug benefit program’s overall costs compared to similar plans. The company contends that Lewandowski’s suit lacks specific evidence showing that other plans offered more cost-effective solutions for the same level of coverage.

Johnson & Johnson Employee Drug Costs Lawsuit: Legal Arguments and Defense

In their motion to dismiss, Johnson & Johnson highlighted that the plaintiff’s claims are based on a narrow selection of 42 generic specialty drugs, which, according to the company, does not represent the thousands of medications covered under their plan. The company stressed the importance of examining the total package of benefits rather than isolated examples to determine the prudence of their decisions.