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Tuesday, July 03, 2012

Drug Maker Agrees to Largest-Ever Fraud Settlement

GlaxoSmithKline LLC, a global health care company, agreed to plead guilty and pay $3 billion, the largest health care fraud settlement in U.S. history, after illegally marketing certain prescription drugs, Department of Justice officials announced Monday.

GSK agreed to pay $3 billion to resolve criminal and civil charges for promoting the drugs Paxil and Wellbutrin for uses not approved by the Food and Drug Administration — such as treating children for depression and treating adult patients for obesity, anxiety, addiction and Attention Deficit Hyperactivity Disorder.

The company also failed to report clinical data about the drug Avandia to the FDA.

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