by William White | July 25, 2013 11:37 am
GlaxoSmithKline (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.
Source URL: http://investorplace.com/2013/07/glaxosmithkline-to-pay-229m-to-settle-diabetes-drug-suit/
Short URL: http://invstplc.com/1nBokUH
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.