Bitter pill for GSK
October 28, 2010
GLAXOSMITHKLINE has agreed
to pay US$750 million to settle a
court case brought by the US
Justice Department over the alleged
sale of defective drugs incl Kytril,
Bactroban, Paxil and Avandamet.
The move finalises a settlement
foreshadowed in Jul under an inprinciple
agreement, with GSK
saying it “resolves a significant and
long standing legal isue facing the
company”.
Court papers claim that
medicines made at a GSK factory
in Cidra, Puerto Rico about five
years ago were misidentified, with
the settlement deal including a
$150m criminal fine and forfeiture,
and a US$600m civil settlement
under the False Claims Act.
The lawsuit was initially filed in
2004 by whistleblower and former
GSK staffer Cheryl Eckard, who will
receive a whopping US$96 million
from the settlement.
US Attorney Carmen Ortiz issued
a statement saying “We will not
tolerate corporate attempts to profit
at the expense of the ill and needy
in our society”.
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