USA whistleblower Cheryl Eckard gets $96million payout from GlaxoSmithKline- an Inspiring Story for everyone

USA whistleblower Cheryl Eckard gets $96million payout from GlaxoSmithKline- an Inspiring Story for everyone

Cheryl Eckard, 51, An American pharmaceuticals worker who blew the whistle on manufacturing failures at GlaxoSmithKline's drug-making factory in Puerto Rico was today rewarded with a $96 million payout.
Reward Amount = 96 multiply into 44 = Indian Rs.4224 Million

Cheryl Eckard discovered manufacturing problems, including micro-organisms in Glaxo's antibiotic cream Bactroban and Paxil depression pills which lacked the active ingredient.


Her lawyer Neil Getnick said Cheryl eclard urged Glaxo managers to improve the manufacturing process, or even close the plant, but was sacked in 2003 for raising the complaints.

Under the False claims act, Cheryl Eckard received $96 million payout.
As per this law if citizens who know of fraud on the government (in this case, government health schemes paying for Glaxo drugs that turned out to be impure) to sue and take 15-20% of the sum the government recoups.
Cheryl Eckard, who worked as a quality-assurance manager at Glaxo until 2003, is entitled to receive at least $96 million of the settlement because she filed a lawsuit in 2004 alleging various manufacturing problems at the company.

What is False claims Act?
The purpose and aim behind this act is that to encourage people with suspected knowledge of false government claims submission to step forward.
The incentive: A share in the amount of fines.
The lawsuits are usually filed confidentially and on behalf of the U.S.
The Justice Department then has the option of taking the lead in the case, using information provided in the lawsuit, which it did in Eckard’s case.

Glaxo was ordered to pay $750 million to settle the claims. It set aside the money in its second-quarter results
33000 Million Indian Rupees fine.
750 multiply 44 = Indian Rs. 33000

Justice Department announced drug maker GlaxoSmithKline would pay $750 million and plead guilty to a criminal charge to settle a probe of manufacturing deficiencies at a Glaxo plant in Puerto Rico between 2001 and 2005.

Those deficiencies caused pills that split apart and led to drugs with inappropriate amounts of active ingredients, which U.S. health authorities said posed safety risks.
The affected drugs included the antidepressant Paxil.

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Sunday, October 31, 2010