GlaxoSmithKline to Pay $229M to Settle Diabetes Drug Suit

GlaxoSmithKline paid a record settlement of $3 billion last year for health-care fraud

   

GlaxoSmithKlineLogo GlaxoSmithKline to Pay $229M to Settle Diabetes Drug SuitGlaxoSmithKline (GSK) announced Wednesday, that it will spend $229 million to settle lawsuits concerning deceptive marketing of its diabetes drug Avandia.

The company agreed to the settlement price with attorney generals of eight states: Kentucky, Louisiana, Maryland, Mississippi, New Mexico, South Carolina, Utah and West Virginia. The states chose not to take a settlement of $90 million offered in 2012, which resolved  Avandia-related consumer-protection claims by 37 other states, reports The Wall Street Journal.

Last year Glaxo pleaded guilty in federal court for failing to provide the Food and Drug Administration with clinical-trial information concerning Avandia. The company paid $3 billion to resolve federal investigations of the company, reports WSJ.

The $3 billion settlement is the largest to date in a health-care fraud case in the U.S., reports Bloomberg.

Avandia was removed from the European market in 2010, and has since been heavily restricted in the United States.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/glaxosmithkline-to-pay-229m-to-settle-diabetes-drug-suit/.

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