Arkansas Attorney General Dustin McDaniel asked the state Supreme Court to reconsider its decision to overturn a $1.2 billion Risperdal settlement against Johnson & Johnson, arguing that it “does significant harm to the state and its citizens.”

The high court’s 4-3 decision contends that the state misapplied the Medicaid fraud law against Johnson & Johnson and its subsidiary Janssen Pharmaceutical Inc. over the marketing of antipsychotic drug Risperdal. In addition, the decision took note of a judge’s error of incorrectly determining the amount at $1.2 billion in fines for the Risperdal settlement.

A state jury found both companies liable in 2012, prompting County Circuit Judge Tim Fox to order the payment of $5,000 for each of the 240,000 Risperdal prescriptions that the state’s Medicaid program paid over a 3 ½ year span. McDaniel, however, argued that the high court decision “deprives the state of a critical tool to protect the integrity of the Arkansas Medicaid program and the vulnerable poor, sick and elderly who depend on Medicaid as a literal lifeline.” The Attorney General also contends that the high court broke with years of precedent by ruling on grounds not previously raised in filings when they ruled that the state’s Code Revision Commission “substantively altered” the meaning of the Medicaid fraud law when it was codified and that it was originally intended to regulate health facilities.

“By improperly transforming a well understood and accepted interpretation of the law, this court has arrogated to itself powers not conferred by the Arkansas Constitution or the General Assembly,” McDaniel said in his filing.

He further argued that the 1983 Medicaid fraud law remained unchanged for 21 years despite other amendments and attempted amendments by the Arkansas Legislature over the years. In a statement, Johnson & Johnson said that the company did not violate the Medicaid fraud law and that it is prepared to vigorously defend its position.

This is not the first incident that Janssen Pharmaceuticals had been entangled with Risperdal class action lawsuits over alleged deceptive marketing practices. In 2011, a South Carolina court ruled that the company deceptively marketed Risperdal to doctors and consumers across the nation. The company filed an appeal after it was ordered to pay $327 million in fines. The Food and Drug Administration approved Risperdal in 2002 for the treatment of schizophrenia. However, Janssen allegedly began to market the drug for the treatment of agitation associated with dementia in the elderly. Though physicians may prescribe drugs of their choice to treat patients, companies cannot market them for unapproved uses. Complaints from consumers piled up, prompting the FDA to investigate the risks associated with Risperdal.

In 2006, the drug was approved for use in children to treat autism and bipolar disorder. Hundreds of Risperdal lawsuits have since been filed with allegations that victims who took Risperdal suffered unintended male breast growth.

The Risperdal settlement at hand is for the case Ortho-McNeil-Janssen Pharmaceuticals Inc. v State of Arkansas, CV 2007-15345, in the Arkansas Supreme Court.