GlaxoSmithKline to pay record $3 billion in US drug fraud case
03 Jul 2012
GlaxoSmithKline plc (GSK) will pay a record $3 billion to various health authorities in the US in the largest healthcare fraud settlement in US history.
GSK on Monday said it has reached an agreement with the US government, several states and the district of Columbia to conclude ongoing federal government investigations.
The final settlement followed agreements reached during negotiations in November 2011, GSK said in a release.
Under the deal, GSK will make payments totalling $3 billion, which will be funded through provisioning and additional cash payment of around $180 million, the company said.
The drug giant will plead guilty to promoting two drugs - Avandia and Advair - for unapproved uses and failing to report safety data about a diabetes drug to the Food and Drug Administration (FDA).
The case concerns nine drugs, including Paxil, Wellbutrin, Avandia and Advair.