Johnson & Johnson employee sues over prescription drug costs

Johnson & Johnson was sued by an employee who says that the company health plan wasted workers' money by paying inflated prices for prescription drugs.

In one instance, the company health plan agreed to pay more than $10,000 for a multiple sclerosis drug that's available for as little as $40 at retail pharmacies, according to the lawsuit, filed Monday in federal court in Camden, New Jersey.

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The complaint alleges that J&J mismanaged the company's prescription-drug benefits program, costing federally regulated plans and workers millions of dollars due to higher payments for drugs, increased premiums, deductibles, copays and lower wages or limited growth.

J&J employee Ann Lewandowski is suing on the grounds that the company breached its fiduciary duties to spend health benefit funds responsibly. The suit seeks class-action status to represent other workers who faced similar costs.

Representatives for J&J didn't immediately respond to a request for comment.

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U.S. employers face rising legal risk over how they manage roughly $1 trillion in annual spending on company-sponsored health plans. While some large companies and unions have sued their health plan providers alleging that they've breached fiduciary obligations, the case against J&J may be the first case by an employee making those claims against a prominent company.