GSK pleaded guilty and agreed to a $3 billion healthcare-fraud resolution
Company: GSK plc
Summary
In July 2012, GlaxoSmithKline LLC agreed to plead guilty and pay $3 billion to resolve criminal and civil liability concerning unlawful prescription-drug promotion, failure to report safety information and alleged false price reporting. The criminal resolution included guilty pleas concerning the misbranding of Paxil and Wellbutrin and the failure to report required safety data concerning Avandia. GSK paid $1 billion in criminal fines and forfeiture and $2 billion to resolve civil liabilities. The wider civil settlement also addressed alleged off-label promotion, physician kickbacks, misleading safety representations and underpaid Medicaid rebates. This record is assigned to GSK plc as the parent group represented in the database; the criminal defendant was its U.S. pharmaceutical entity, GlaxoSmithKline LLC. Source / proof: U.S. Department of Justice: https://www.justice.gov/archives/opa/pr/glaxosmithkline-plead-guilty-and-pay-3-billion-resolve-fraud-allegations-and-failure-report
Record details
- Category
- Corporate Misconduct
- When it happened
- 1994–2007
- Status
- Resolved (July 5, 2012)
- Severity
- high
- Added to Rotten Company
Source
No source document is attached to this record. It was approved under our moderation guidelines.