GlaxoSmithKline Agrees to $3 Billion Settlement with Justice Department Over Health Care Fraud

Ryan Jaslow
CBS News
July 2, 2012

Pharmaceutical giant GlaxoSmithKline will plead guilty and pay $3 billion in the largest settlement of health care fraud in U.S. history, the Justice Department announced Monday.

The settlement will resolve criminal and civil liability from the company’s unlawful promotion of certain prescription drugs. The company is to plead guilty to a three-count criminal information, including two counts of introducing misbranded antidepressant drugs Paxil and Wellbutrin to interstate commerce and one count of failing to report safety data about the diabetes drug Avandia to the FDA. The criminal complaints will total $1 billion.

GSK will also pay $2 billion to resolve civil liabilities relating to Paxil, Wellbutrin and Avandia, as well as other drugs and also resolves allegations of pricing fraud.

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This article was posted: Monday, July 2, 2012 at 12:55 pm

Tags: domestic news, healthcare, pharmaceutical

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