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July 3, 2012

Pharma Giant GlaxoSmithKline Fined Record $3 Billion for Health Care Fraud 
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Pharmaceutical company Glaxo Smith Kline has agreed to a $3 billion fine
and a guilty plea on criminal charges in what has been described as the
biggest case of healthcare fraud in U.S. history. A Justice
Department-led probe found the company promoted antidepressants Paxil
and Wellbutrin for unapproved uses, including marketing Paxil to
children when it was only approved for adults. Prosecutors say Glaxo
Smith Kline promoted the drugs by distributing a misleading journal
article and giving doctors perks that amounted to illegal kickbacks.
Prosecutors also contend the company failed to give the U.S. Food and
Drug Administration safety data about the diabetes drug Avandia, which
has been linked to heart risks. Deputy Attorney General James Cole
unveiled the settlement on Monday.

James Cole: "This action constitutes the largest healthcare fraud
settlement in U.S. history. We are determined to stop practices that
jeopardize patient's health, harm taxpayers and violate the public
trust."

Consumer advocacy group Public Citizen said the $3 billion settlement
does not go far enough because the fines "pale in comparison" to the
drug company's profits. In a statement, Public Citizen said: "Until more
meaningful penalties and the prospect of jail time for company heads
responsible for such activity become commonplace, companies will
continue defrauding the government and putting patients' lives in
danger."

 

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