Glaxo paying $3B for drug fraud

6:39 PM, Jul 2, 2012   |    comments
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U.S. (AP) - RECORD FINE: British drugmaker GlaxoSmithKline will pay a $1 billion criminal fine and $2 billion to settle civil claims for illegal actions involving 10 drugs, in the biggest U.S. healthcare fraud settlement ever.

WHISTLEBLOWER CLAIMS: The case started in 2003 with claims by multiple Glaxo sales reps that they were being told to press doctors to prescribe drugs for unapproved uses, including uses involving young children. The drugmaker also was accused of not disclosing dangers of diabetes drug Avandia, and of overcharging Medicaid for drugs.

DETERRENT: Glaxo agreed to let government officials monitor its activities for five years.

The Associated Press

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