Largest False Claims Act Recovery in U.S. History Wins $1.64 Billion for Government

Landmark False Claims Act Recovery: A $1.64 Billion Victory

On March 28, 2025, history was made in the courtroom as Berger Montague and Reese Marketos secured one of the most significant recoveries under the False Claims Act for the U.S. government. The law firms successfully advocated for a monumental $1.64 billion judgment against Janssen Products, a subsidiary of Johnson & Johnson, following a lengthy and arduous whistleblower case that has spanned over a decade. This ruling underscores the vital role of whistleblowers and the justice they can achieve in exposing fraudulent practices in the pharmaceutical industry.

Background of the Case

The legal saga began back in 2012 when former Janssen sales representatives Jessica Penelow and Christine Brancaccio filed a lawsuit alleging that the company was engaged in a fraudulent scheme involving the unlawful marketing of two of its HIV drugs: Prezista and Intelence. In March 2025, after a six-week trial, U.S. District Judge Zahid N. Quraishi delivered a verdict confirming that Janssen had conducted a calculated scheme over several years, promoting the medications for off-label uses contrary to FDA regulations.

Leading the trial for the whistleblowers, Reese Marketos brought their expertise and determination, collaborating with Berger Montague, known for its strong background in complex legal battles. This partnership proved fruitful, as they effectively countered numerous pretrial challenges, including a significant motion for summary judgment from Janssen in 2021 that was defeated.

Details of the Judgment

The jury’s verdict revealed that Janssen falsely submitted approximately 159,574 claims to the government for reimbursement of its drugs, resulting in $120 million in single damages awarded to the federal government. Under the stringent provisions of the False Claims Act, these damages were automatically tripled, leading to a total of $360 million before the court imposed further penalties. For every false claim submitted, Janssen faced a penalty of $8,000, escalating the final award to the staggering sum of $1.64 billion, which also included post-judgment interest.

Sherrie Savett, a prominent Executive Shareholder and Chair of the False Claims Act practice at Berger Montague, expressed immense pride in the outcome. She stated, "Our courageous clients – Jessica and Christine—have been living and breathing this case for more than 12 years now. It's been a hard road. But this is a fantastic result."

The Trial's Logistics and Strategy

The trial illustrated the challenges that come with holding large corporations accountable for fraudulent actions. Jurors were presented with compelling evidence of Janssen's deceptive marketing strategies, including misrepresentations of drug safety and effectiveness. Testimonies revealed that Janssen touted the drug Intelence as suitable for once-a-day usage for HIV treatment, while FDA approvals only validated its twice-a-day use for specific patient groups. Jurors also learned how Janssen misrepresented the side effects of its drugs to thousands of physicians, in stark contrast to FDA-approved information.

Pete Marketos, a partner at Reese Marketos, emphasized the immense preparation that went into the case. He stated, "This trial required relentless preparation and courtroom advocacy to stay on top of Janssen's never-ending excuses and blame-shifting. Beyond bringing well-deserved justice for our clients, this ruling also marks a great day for Medicare and U.S. taxpayers."

The Significance of This Judgment

This landmark ruling not only serves as a significant victory for the whistleblowers but also provides a stark message to the pharmaceutical industry regarding the accountability for unethical practices. The False Claims Act, which allows private citizens to file lawsuits on behalf of the government, is a powerful tool in combating fraud and ensuring that government resources are used appropriately.

The legal firms involved are now viewed as champions within this arena, with Reese Marketos gaining particular recognition as a litigation boutique specializing in high-stakes trials. Founded in 2011, they have quickly established a reputation for their expertise in complex commercial litigation and white-collar defense. Conversely, Berger Montague proudly boasts a legacy of over 50 years in complex civil litigation, having recovered over $50 billion for clients and classes they represent, further highlighting their prowess in navigating intricate legal waters.

As the implications of this judgment unfold, it is clear that whistleblower cases will continue to play a crucial role in upholding integrity within the pharmaceutical sector. The results of this monumental case offer hope for those who, like Penelow and Brancaccio, dare to speak out against misconduct, ensuring that larger systemic issues can be addressed and rectified for a healthier future.

This case is designated as 312-cv-07758 in the United States District Court for the District of New Jersey.