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Nov 3, 2011 - Pharmaceutical Litigation/Dangerous Drugs by Cross & Smith
Drug maker GlaxoSmithKline PLC said Thursday that it has agreed in principle with the United States government on a $3 billion settlement of investigations of the company’s sales and marketing practices.
The agreement is expected to be completed next year, and the settlement will be paid through the company’s cash resources, it said.
The case dates from 2004, and included investigations of possible price irregularities and the development and marketing of the diabetes drug Avandia.
The company said the tentative settlement covers both civil and criminal liabilities.
In June, Glaxo’s U.S. subsidiary agreed to pay more than $40 million to 37 U.S. states and Washington, D.C., to settle complaints about manufacturing processes at a plant in Puerto Rico, which has been closed.
The company also paid a $750 million fine in 2010 in the U.S. related to the Puerto Rico plant.
The Associated Press
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Posted By: Alice Kirkland