02 July 2012

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GlaxoSmithKline to pay $3 billion to settle healthcare fraud in U.S. history

GlaxoSmithKline to pay $3 billion to settle healthcare fraud in U.S. history


It is illegal to promote uses for a drug that are not approved by the Food and Drug Administration, a practice known as off-label marketing.

GlaxoSmithKline illegally promoted the drug Paxil for treating depression in children from April 1998 to August 2003, even though the FDA never approved it for anyone under age 18.

The corporation also promoted the drug Wellbutrin from January 1999 to December 2003 for weight loss, the treatment of sexual dysfunction, substance addictions and attention deficit hyperactivity disorder, although it was only approved for treatment of major depressive disorder.

Media reported that GlaxoSmithKline has agreed to plead guilty to criminal charges and pay $3 billion to settle the largest case of healthcare fraud in U.S. history.

GlaxoSmithKline will pay $1 billion in criminal fines and $2 billion in civil fines in connection with the sale of the drug company's Paxil, Wellbutrin, and Avandia products.

On Monday Deputy U.S. Attorney General James Cole told to media that
the settlement "is unprecedented in both size and scope."

Carmin M. Ortiz, US attorney in Massachusetts told to media that
GSK's sales force bribed physicians to prescribe GSK products using every imaginable form of high priced entertainment, from Hawaiian vacations to paying doctors millions of dollars to go on speaking tours to a European pheasant hunt to tickets to Madonna concerts, and this is just to name a few,''

What will happen in India if same story and same crime happens in India?

Do you think such crimes happen in India, keep happening every day?

Do you think in India such fine any company will pay or company will pay under table to politicians,which will end the inquiry forever and company will get the excellence award?

Reality views by sm –

Monday, July 02, 2012

Tags – Medical Fraud USA


Renu July 03, 2012  

and we think of glaxo as a reputed company...

Ash July 03, 2012  

good lord.... this is shocking... promoting an anti-depressant as a drug for weight loss etc... they are known to have unpleasant side effects.

Shaw July 03, 2012  

I was actually on Paxil for a while...

Destination Infinity July 03, 2012  

Why do doctors accept the bribes from such companies and prescribe these drugs to people? The fault lies there, don't you think? The doctors should be aware of what drugs are safe/allowed vs what are not. I think doctors should be held up, along with the company.

Destination Infinity

SM July 03, 2012  

@Destination Infinity

Yes doctors are also guilty.