Skip to content
Sign up free
News

GlaxoSmithKline Pays Largest Health Care Fraud Penalty To Date

GlaxoSmithKline Pays Largest Health Care Fraud Penalty To Date

By Faith Eischen

2-minute read

health-care-fraud

GlaxoSmithKline LLC pleads guilty this week to a $3 billion fine for illegally promoting unapproved drugs as well as failing to disclose the drugs safety precautions.

Deputy Attorney General James M. Coles said the $3 billion fine is the largest penalty ever paid by a drug company for healthcare fraud. As part of the penalty, government officials will supervise GlaxSmithKline for the next five years to ensure the corporation’s acquiescence.

“Let me be clear, we will not tolerate health care fraud," Cole told a news conference at the Justice Department.

“For far too long, we have heard that the pharmaceutical industry views these settlements merely as the cost of doing business," the Associated Press reports Assistant Genteral Stuart F. Delery, head of Justice’s civil division stated in a news conference. "That is why this administration is committed to using every available tool to defeat health care fraud."

"Today's resolution seeks not only to punish wrongdoing and recover taxpayer dollars, but to ensure GSK's future compliance with the law."

GlaxoKlineSmith was guilty of advertising an anti-depressant drug, Paxil, for children. The FDA never approved Paxil for patients under the age of eighteen. GKS also promoted Wellbutrin, as a drug for weight loss, sexual dysfunction, substance addictions, and ADHD. The FDA had only approved Wellbutrin as a means for treating major depressive disorder. GSK also failed to let the FDA know of the results of two studies on the cardiovascular safety of the diabetes drug Avandia.

U.S. Attorney, Carmin M. Ortiz pointed out more of the corporation’s illegal behavior:

"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."

According to the Huffington Post, “[Out] of the penalties, $1 billion covers criminal fines and forfeitures and $2 billion is for civil settlements with the federal government and the state governments of Massachusetts and Colorado.

In 2009, the Health Care Fraud Prevention and Enforcement Team was created and since then has collected approximately $10.2 billion in settlements and fines, as well as pressed criminal charges against 800 defendants.

"California consumers have the right to expect that their health and well-being — and not profit — drives decisions about their care," Kamala D. Harris, California’s Attorney General said in a statement.

"This settlement protects consumers and puts an end to unscrupulous marketing practices, kickbacks and illegal labeling of prescription drugs."

Tags: News

Adhere to the IVN etiquette

By posting a comment, you agree to adhere to our etiquette rules: No partisan attacks, no personal attacks, substantiate your sources, no self-promotion.

Get IVN’s Free Weekly Newsletter:Get IVN’s Free Newsletter

Get IVN’s Free Weekly Newsletter:Get IVN’s Free Newsletter

Nonpartisan Issues. Diverse Perspectives.

Check your inbox and click the link to confirm.

Republish this article

Republishing guidelines

Republish IVN articles for free. Independent Voter News articles may be republished online or in print under a Creative Commons BY-NC-ND 4.0 license, on these terms:

  1. Credit the author and IVN. Keep the byline ("By Author Name, Independent Voter News") and the attribution note at the end, which links to the original.
  2. Keep the meaning. You may update time and place references and apply your house style. You may trim for length, as long as the cuts don't change the meaning or misrepresent the author. Keep the headline. Mark any additions as your own (for example "Additional reporting by ...").
  3. Translations are welcome. Translate faithfully, add "Translated from English by [your outlet]", and tell us at editor@ivn.us.
  4. Keep the links, including the link to the original article.
  5. Keep the tracking image. The HTML includes a 1-pixel image that counts readers on your page. It collects no personal information.
  6. Photos and illustrations. Images credited to IVN may be used with this article only. Images credited to others (AP, Getty, Unsplash, Wikimedia and so on) stay under their owners' terms. Secure the rights or switch "Include images" off.
  7. Don't sell it. You can't sell our articles or sell ads specifically against them. Your normal site advertising is fine.
  8. No implied endorsement. Don't suggest that IVN or the author endorses you, your candidates or your causes, or that donations to you support IVN.
  9. Keep labels. Opinion or analysis pieces keep that label.
  10. Point search engines to the original. Set the canonical URL of your copy to the original IVN article (the HTML we give you includes the tag).
  11. No bulk or automated republishing, and don't submit our articles to aggregators (Apple News, Google News, MSN) as your own.
  12. Corrections and removals. Update your copy when we correct it, and remove it promptly if we ask. We'll contact you at the email you give us.
  13. Questions or print republication: editor@ivn.us.

IVN staff: fill in who you're inviting above, then create the invite.

Preparing the article

GlaxoSmithKline Pays Largest Health Care Fraud Penalty To Date

Choose a format
  • HTML
  • Email HTML
  • Markdown
  • Formatted (.docx)
  • Plain text
  • WordPress blocks
  • PDF
Choose a platform

Photos credited to others need their owners' permission.

To for

Republishing somewhere else? Questions? editor@ivn.us