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GSK Settles Fraud Case for $3 Billion
The settlement includes $1 billion in criminal fines and $2 billion in civil fines in connection with the sale of the antidepressants Paxil (paroxetine) and Wellbutrin (bupropion), and the diabetes drug Avandia (rosiglitazone). GSK was accused of illegally promoting Paxil and Wellbutin, and of failing to report safety data about Avandia.
As part of the settlement, GSK agreed to strict oversight of its sales force by the U.S. government to prevent the use of kickbacks or other prohibited practices.
GSK said in a statement it would pay the fines through existing cash resources. The company announced a $3 billion charge in November 2011 related to legal claims.
At a news conference in Washington, Deputy U.S. Attorney General James Cole said that the settlement “is unprecedented in both size and scope.”
Read the full article in the New York Times.