GlaxoSmithKline now knows that it's not invincible.
The giant pharmaceutical giant is pleading guilty and paying a $3 billion settlement in a case of health care fraud… which makes it the BIGGEST settlement of that kind in U.S. history.
What it does is resolve criminal and civil liability from the company's unlawful promotion of certain prescription drugs.
They misbranded antidepressant drugs Paxil and Wellbutrin to interstate commerce and failed to report safety data about the diabetes drug Avandia to the FDA.
The criminal complaints will total $1 billion.
The other $2 billion is going towards resolving civil liabilities relating to Paxil, Wellbutrin and Avandia, as well as other drugs and also resolves allegations of pricing fraud.
Here's what the deputy attorney general said:
"Today's multi-billion dollar settlement is unprecedented in both size and scope. It underscores the Administration's firm commitment to protecting the American people and holding accountable those who commit health care fraud. At every level, we are determined to stop practices that jeopardize patients' health, harm taxpayers, and violate the public trust - and this historic action is a clear warning to any company that chooses to break the law."
Calling GSK on their BS is one of the best things for the pharm industry — and we're glad it worked.
Here's what a GSK CEO had to say:
"Today brings to resolution difficult, long-standing matters for GSK. Whilst these originate in a different era for the company, they cannot and will not be ignored. On behalf of GSK, I want to express our regret and reiterate that we have learnt from the mistakes that were made."
We'll believe it when we see it!
Good work, Justice Department!
[Image via AP Images.]
Tags: america, american, awful, billion, diabetes, drugs, fda, glaxosmithkline, health, health care, patient, patients, people, safety