GSK settles $750 million whistleblower suit
GlaxoSmithKline (GSK) has agreed to pay $750 million (£471 million) to settle the criminal and civil charges relating to the manufacture of adulterated drugs at the company’s now closed plant at Cidra, Puerto Rico. Under the provisions of the US False Claims Act, the whistleblowing former staff member who initiated the suit will receive approximately $96 million.
The case involves drugs manufactured by GSK’s Puerto Rican subsidiary, SB Pharmaco, between 2001 and 2005. SB Pharmaco has pleaded guilty to releasing adulterated forms of its antiemetic Kytril (granisetron); the antibiotic Bactroban (mupirocin), the antidepressant Paxil (paroxetine); and its diabetes drug Avandamet (rosiglitazone with metformin), for which the company will pay a criminal fine of $150 million. GSK will pay an additional $600 million to the federal and state governments to resolve allegations that it caused false claims to be submitted to Medicaid and other federal healthcare programs for the adulterated drugs. (more…)