A lawyer for two drug companies told the Arkansas Supreme Court that the state improperly relied on federal regulations in a lawsuit that resulted in a $1.2 billion award over the companies' marketing of an antipsychotics drug.
The state's attorneys countered during Thursday's hearing before the high court that Johnson & Johnson and a subsidiary were properly penalized for improper marketing of the drug Risperdal.
A Pulaski County jury ruled against the companies in 2012.
The companies also argued that the state brought the case under a Medicaid fraud law when there were no indications of improper reimbursements.
Sixty-five legislators filed a friend of the court brief saying the law was properly applied.
Johnson & Johnson separately agreed to a $2.2 billion federal settlement on similar claims.