Drug firm to pay £1.9bn in record healthcare fraud settlement

GlaxoSmithKline will pay three billion dollars (£1.9bn) in fines in the largest healthcare fraud settlement in US history for criminal and civil offences involving 10 drugs taken by millions of people.
By The Newsroom
Published 4th Jul 2012, 07:00 BST

The US Justice Department said Britain’s largest drug maker would plead guilty to promoting popular anti-depressants Paxil and Wellbutrin for unapproved uses.

The company will also plead guilty to failing to report to the government for seven years some safety problems with diabetes drug Avandia, which was restricted in the US and banned in Europe after it was found in 2007 to sharply increase the risks of heart attacks and congestive heart failure. In addition to the fine, Glaxo agreed to resolve civil liability for promoting Paxil, Wellbutrin, asthma drug Advair and two lesser-known drugs for unapproved uses.

Hide Ad
Hide Ad

The company also resolved accusations it overcharged the government-funded Medicaid programme for some drugs and that it bribed doctors to prescribe several medicines including asthma drug Flovent and herpes medicine Valtrex.

Related topics:BritainEurope