- Mount Everest avalanche kills a dozen Sherpa guides
- Vice principal saved from South Korean sinking ferry found hanged
- ‘I Am Alive’ app gains popularity in terror-ravaged Lebanon
- Gun giveaways gain popularity among Republican candidates
- S.C. hospital worker slapped with $525 federal fine for refilling $0.89 soda
- Teen from ‘Jihad Jane’ plot becomes youngest ever to serve time on U.S. terror charges
- Iranian woman forgives son’s killer at the gallows
- Nebraska principal sorry for ‘don’t tattle’ flier
- Illinois readies to spend $100M for Obama museum in Chicago
- John Edwards back in court — this time as a lawyer for Va. boy’s malpractice case
Drug maker agrees to largest-ever fraud settlement
GlaxoSmithKline LLC, a global health care company, agreed to plead guilty and pay $3 billion, the largest health care fraud settlement in U.S. history, after illegally marketing certain prescription drugs, Department of Justice officials announced Monday.
GSK agreed to pay $3 billion to resolve criminal and civil charges for promoting the drugs Paxil and Wellbutrin for uses not approved by the Food and Drug Administration — such as treating children for depression and treating adult patients for obesity, anxiety, addiction and Attention Deficit Hyperactivity Disorder.
The company also failed to report clinical data about the drug Avandia to the FDA.
It will pay $1 billion in criminal fines and forfeitures and another $2 billion to resolve allegations that it caused false claims to be submitted to federal health care programs — marking the largest health care fraud settlement in history, said deputy attorney general James Cole.
"Today's multi-billion dollar settlement is unprecedented in both size and scope," Mr. Cole said. "It underscores this administration's firm commitment to protecting the American people and holding accountable those who commit health care fraud."
The FDA, the FBI and the Department of Health and Human Services also helped to investigate GSK's illegal activities.
The DOJ has recovered more than $10.2 billion in settlements, judgements, fines, restitution and forfeiture in health care fraud cases in the three years since President Obama's administration created a new health care fraud prevention team and a Medicare strike force.
Earlier this year, officials said they had uncovered the largest Medicare fraud scheme in history, arresting a ring of Dallas-area health care professionals on suspicion of collecting $375 billion for phony medical claims.
GSK agreed to plead guilty to a three-count criminal information, including two counts of introducing misbranded drugs, Paxil and Wellbutrin, into interstate commerce and one count of failing to report safety data about the drug Avandia to the Food and Drug Administration (FDA).
Under the terms of the plea agreement, GSK will pay a total of $1 billion, including a criminal fine of $956,814,400 and forfeiture in the amount of $43,185,600. The criminal plea agreement also includes certain non-monetary compliance commitments and certifications by GSK's U.S. president and board of directors.
GSK's guilty plea and sentence is not final until accepted by the U.S. District Court.
GSK will also pay $2 billion to resolve its civil liabilities with the federal government under the False Claims Act, as well as the states.The civil settlement resolves claims relating to Paxil, Wellbutrin and Avandia, as well as additional drugs, and also resolves pricing fraud allegations.
"For a long time, our health care system had been a target for cheaters who thought they could make an easy profit at the expense of public safety, taxpayers, and the millions of Americans who depend on programs like Medicare and Medicaid," said Bill Corr, deputy secretary of the Department of Health and Human Services.
"But thanks to strong enforcement actions like those we have announced today, that equation is rapidly changing," he said.
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
- A familiar fading feeling for McMahon in Connecticut
- Romney’s bid to undo health law faces hurdles
- Hill GOP presses Medicare probe
- Romney, Obama advisors butt heads over binders, Big Bird and “Romnesia”
- Outsiders abide by rules in Brown-Warren race
Latest Blog Entries
TWT Video Picks
By Tammy Bruce
Team Obama's bizarre behavior helps Gitmo terrorists foil justice
- BOLTON: A 'three-state solution' for Middle East peace
- Joe Biden's biggest gaffe: VP blowing his 2016 head start
- With pot and e-cigarettes, Big Tobacco is just waiting to inhale emerging markets
- Obama taunts GOP, takes nationally televised victory lap on Obamacare
- DeLAY: Hearings offer ripe target in Obamacare battle
- Attacks, rapes and forced conversions to Islam spike for Egypt's Christian women: report
- Atheists rush to stage Easter display: 'Jesus Christ is a myth'
- Rand and Ron Paul ride to the rescue for Bundy in Nevada standoff with feds
- Jews being told to register in Ukraine: John Kerry
- Russian fighter jet buzzes U.S. Navy destroyer in Black Sea
Top 10 handguns in the U.S.