Glaxo-Smith Kline Pleads Guilty Fined 3 Billion Dollars For Fraud

It is being called The Largest Fine for HealthCare and Drug Fraud in US History!!

One of the largest pharmaceutical frauds in US history perpetrated by British owned Glaxo-Smith Kline is charged and will pay 3 billion dollars for criminal violations.

An announcement by the US. Dept. of Justice fined Glaxo-Smith Kline for illegally promoting anti-depressants for unapproved uses: the drugs are Paxil and Wellbutrin.

In addition the promotion and safety issues with Avandia are among the drugs charged since Avandia caused heart attacks in diabetic patients.

Advair is also included in the 10 drugs that are marketed for uses not approved by the FDA.

GSK was charged with:

Over-billing Medicaid for drugs, paid by the US healthcare system
Paid kickbacks to physicians who prescribed (an illegal act) Fraud The company also marketed these drugs for non-approved uses.

GSK (Glaxo-Smith Kline) plead guilty to these charges, and will pay:

In the US District Court in Boston the pharmaceutical giant plead to the criminal charges on Thursday, at a hearing.

1 billion is charged for the criminal fines
2 billion will go to resolve civil claims of damages to consumers

Glaxo will now be strictly monitored by the federal government for 5 years to ensure
it abides by the laws and regulations of marketing drugs, that are untested by outside independent organization.s

The case began in January 2003 and has taken 9 years to litigate most often caused by lengthy delays in appeals, and obstructing claims.

Two former sales representative employees of the drug company brought the case, later joined by the federal government. The two whistleblowers were: Greg Thorpe and Blaire Hamrick.

GSK also targeted black diabetic patients for their marketing scheme.

Glaxo Fired WhistleBlowers

GSK also marketed Paxil to children illegally under the age of 18 years of age.
The drug company marketed WellButrin for four years for weight loss, sex dysfunction, addiction and ADHD for which the drug was not approved.

in 2001 Thorpe reported the improper marketing practices, which initiated an internal investigation by the company, which was ignored and he was later asked to resign. In Hamrick’s case he was fired for not complying with the kickback investigation.

Tags: Glaxo Fined 3 Billion in Fraud, DOJ fines Glaxo-Smith Kline 3 billion dollars, drug company fraud, whistleblowers in drug companies, drugs.

Glaxo agreed to pay the fine but again there is no US government deterrent in the law to persuade this repeat offender to stop breaking the law.

Money and the Media You often see major drug company ads on all the US Television networks, from ABC, NBC, CBS, Fox and CNN all during the dinner hour, directed at US families pushing pharma drugs. 

No exception is that the media mogul Rupert Murdoch’s son James Murdoch were on the board of directors for GlaxoSmithkline up to Jan 1, 2012 when they quit the board.

Sources for more information

NY Times- Glaxo Agrees to Pay 3 Billion in Fraud Settlement

Reuters:  GlaxoSmithKline Settle Healthcare Fraud for 3 Billion Dollars