Drug Company To Pay $3 Billion Settlement For Bogus Marketing

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A U.K. drug company has agreed to pay $3 billion to end U.S. criminal and civil investigations into whether it marketed drugs for unapproved uses and other matters.

The company, GlaxoSmithKline PLC, was being probed  for its sales and marketing practices for drugs including the antidepressants Paxil and Wellbutrin, according to The Associated Press. The company was also facing questions about its development and marketing of a diabetes drug called Avandia, which has been withdrawn from the European market and limited in the United States because of increased heart attack risks.

An investigation was begun by the U.S. Attorney’s office of Colorado in 2004 and later taken over by the U.S. Attorney’s Office of Massachusetts into whether the company was promoting drugs for unapproved uses, and influencing doctors to prescribe them.

The Justice Department also launched investigations into possible inappropriate use of the nominal price exception under the Medicaid Rebate Program, according to The Washington Post.

The $3 billion settlement, which Glaxo says will be paid with its “cash resources,” will be the largest pharmaceutical marketing settlement in U.S. history.

Sam Rolley

Staff writer Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After learning about many of the biases present in most modern newsrooms, Rolley became determined to find a position in journalism that would allow him to combat the unsavory image that the news industry has gained. He is dedicated to seeking the truth and exposing the lies disseminated by the mainstream media at the behest of their corporate masters, special interest groups and information gatekeepers.