GlaxoSmithKline to Pay $229M to Settle Diabetes Drug Suit

by William White | July 25, 2013 11:37 am

GlaxoSmithKlineLogo GlaxoSmithKline to Pay $229M to Settle Diabetes Drug Suit[1]GlaxoSmithKline (GSK[2]) announced Wednesday[3], 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[4].

Avandia was removed from the European market [5]in 2010, and has since been heavily restricted in the United States.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/09/GlaxoSmithKlineLogo.jpg
  2. GSK: http://studio-5.financialcontent.com/investplace/quote?Symbol=GSK
  3. announced Wednesday: http://online.wsj.com/article/SB10001424127887324110404578626310672687242.html
  4. Bloomberg: http://www.bloomberg.com/news/2013-07-25/glaxo-reaches-229-million-settlement-with-8-states-on-avandia.html
  5. removed from the European market : http://www.chicagotribune.com/health/sns-rt-us-glaxosmithkline-avandia-20130724,0,2169732.story

Source URL: http://investorplace.com/2013/07/glaxosmithkline-to-pay-229m-to-settle-diabetes-drug-suit/
Short URL: http://invstplc.com/1nBokUH