Shares of the company fell $2.07, or 1.6%, to $129.80 in after-hours trading.
A Pennsylvania jury imposed the punitive damages in a case involving Risperdal, Reuters reported. The anti-psychotic medication has been tied to the development of breasts in some male patients.
The plaintiff in the case previously won a damages award of $680,000, according to the report. The huge difference between the initial damages award and the punitive award make it likely the amount will be reduced on appeal as a violation of due process, the report noted.
The company faces more than 13,000 legal cases related to Risperdal, according to its latest 10-Q report with the SEC.
Johnson & Johnson also faces substantial numbers of lawsuits over allegations talc in its baby powders caused cancer in women who used it.
Johnson & Johnson is a holding in Jim Cramer's Action Alerts PLUS member club.