Court Approves Johnson & Johnson Settlement

A New Jersey Superior Court judge Thursday approved Johnson & Johnson’s $860-million settlement of lawsuits accusing the drug maker of misleading consumers into prematurely throwing away disposable 1-Day Acuvue contact lenses.

Judge John Fratto found that the settlement is a “fair and reasonable” resolution of lawsuits by consumers, who said they were deceived into thinking they could use the lenses only a single time. Johnson & Johnson has agreed to pay consumers as much as $840 million in cash, coupons and eye examinations.

The suits claimed New Brunswick, N.J.-based Johnson & Johnson boosted sales of its 1-Day Acuvue soft lenses by advising consumers to use them just once, even though the product is identical to regular Acuvue lenses that may be worn as long as two weeks.

In settling the case, the company said it did not admit wrongdoing.

Experts hired by the consumers’ lawyers estimated in court papers that Johnson & Johnson bilked consumers out of more than $1.1 billion through its labeling and packaging of the 1-Day Acuvue lenses.

An estimated 6 million customers bought the Acuvue lenses since 1994, according to court papers. On average, each consumer will receive about $140 in cash and coupons under the agreement.

The company recommended in its packaging and in advertising that 1-Day Acuvue users discard the lenses after 24 hours of use. Regular Acuvue buyers were advised to continue using the product for seven days of 24-hour use, or two weeks if taken out and cleaned each night.

The company’s internal documents and statements to the Food and Drug Administration showed the two products were identical, consumers’ lawyers claimed.

Johnson & Johnson conceded that it was “not aware of any clinical reason” the one-day lenses “could not be worn for more than one day,” according to a 1998 consumers’ brief, arguing that the lawsuit should receive class-action status.

Under the settlement, Johnson & Johnson officials agreed to remove the words “Disposable” and “For Single Use” from the 1-Day Acuvue box, according to court papers.

Johnson & Johnson shares fell 29 cents to close at $58.97 on the New York Stock Exchange.