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GlaxoSmithKline (GSK) Settles Promotion Claims: $105 Million Settlement

Bloomberg News reports that GlaxoSmithKline (GSK), the U.K.’s largest drug manufacturer, settled claims nationwide alleging the drug manufacturer illegally promoted asthma and antidepressant drugs.

The company will contribute $105 million to a settlement fund over claims asserted by California, New York, and more than 40 other states. California will receive the bulk of the settlement in the amount of $7.1 million. As part of the settlement agreement, GSK will be prohibited from providing incentive payments to pharmaceutical salespeople who encourage off-label uses (i.e., uses of the drug that are not indicated on the labels). The agreement also prohibits GSK from using paid doctors to promote its products. Despite the settlement agreement, GSK does not admit to any wrongdoing.

While GSK has agreed to pay $105 million in the U.S., it still faces ensuing litigation internationally. On May 27, the company stated that it faces a criminal investigation in the U.K. after China made allegations that the company’s employees bribed doctors, hospitals, and medical associations to increase sales. Company employees in Iraq, Poland, Jordan, and Lebanon also face accusations of wrongdoing.

In 2012, the drug manufacturer plead guilty and paid $3 billion over both criminal and civil allegations that it sold its antidepressant drugs for uses that were unapproved by the FDA. Further allegations included that GSK violated discovery rules in failing to properly turn over clinical data on its diabetes drug Avandia. In another lawsuit, Glaxo was forced to pay more than $1 billion to a settlement fund over claims that the company officials hid the fact that its drug Paxil could cause birth defects.

 

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