Source: Johnson & Johnson Settles Suit With Texas

A person familiar with negotiations tells The Associated Press that Johnson & Johnson and the state of Texas have reached a settlement in a lawsuit in which the state was seeking up to $1 billion from the New Jersey based drug maker.

The person tells the AP the settlement will be announced in court Thursday morning in Austin but would not release details of the deal. The person spoke on condition of anonymity because the settlement has not yet been announced in court.

The lawsuit was brought to trial earlier this month, with Texas accusing the company of plundering the state Medicaid program by overstating the safety of the expensive anti-psychotic drug

Risperdal and improperly influencing officials and doctors to push the medication.

The lawsuit was originally filed in 2004.

(Copyright 2012 by The Associated Press. All Rights Reserved.)