Drug Companies Who Rip Us Off Finally Fined 3 $$$BILLION$$$

GlaxoSmithKline will pay a $3 billion settlement

NEW YORK (CNNMoney) — GlaxoSmithKline was slapped with a $3 billion fine Monday by the U.S. Justice Department after failing to report safety data on some of the company’s most popular drugs.

The payment — with $1 billion going to settle criminal wrongdoing, and $2 billion to cover civil liabilities — is the largest fraud settlement in U.S. history, and the largest payment ever by a drug company.

GlaxoSmithKline (GSK) will plead guilty to two counts of introducing misbranded drugs, Paxil and Wellbutrin, into interstate commerce.

Directly From GSK Press Release

“The agreement resolves criminal and civil liabilities related to: an investigation begun by the US Attorney’s office of Colorado in 2004 and later taken over by the US Attorney’s Office of Massachusetts into GSK’s sales and marketing practices for nine products; the U.S. Department of Justice’s investigation of possible inappropriate use of the nominal price exception under the Medicaid Rebate Program; and the Department of Justice’s investigation of the marketing and regulatory submissions of Avandia. 

As part of the agreement, GSK has entered into a corporate integrity agreement (CIA) with the Office of Inspector General (OIG) of the U.S. Department of Health and Human Services.  The CIA will also cover a portion of GSK’s manufacturing operations, related to the company’s settlement in 2010 on events in the early 2000s at GSK’s former manufacturing facility in Cidra, Puerto Rico.  In both areas, the CIA will build on the company’s existing comprehensive compliance programmes.”

States Get Into the Suit Too!

Pharmaceutical giant GlaxoSmithKline has agreed to pay more than $35 million to the Massachusetts Medicaid program as part of the British drug maker’s $3 billion settlement Monday with federal and state authorities in the largest US health care fraud case ever.

Responsibility, According to GSK

“We are transforming GSK to create a company that creates value for patients, consumers and governments, as well as shareholders. We place great importance on what we achieve but also how we achieve it. We believe business should play a greater role in tackling social, economic and environmental challenges. ” Directly from GSK website

We have four core areas of focus which reflect the issues we see as most important for responsible and sustainable business growth.

  • Health for all
    Improving the health and well-being of people around the world
  • Our people and communities
    Developing our people and supporting communities
  • Our planet
    Protecting the natural resources we need for the future
  • Our behaviour

Being open and honest in everything we do “YAH, RIGHT!”

Specifically, the government alleged that the drugs were marketed as a treatment for conditions for which they had not been approved. It said Paxil, which treats depressive and anxiety disorders in adults, was marketed to children and adolescents, and Wellbutrin, an antidepressant, was marketed as a weight-loss aid.

“We Americans simply and blindly trust large drug companies to follow the rules: they don’t care about you, they care about money and profits.”

A third count involves a failure to report safety data about the drug Avandia, a diabetes drug, to the Food and Drug Administration between 2001 and 2007.

In addition to the criminal and civil resolutions, GlaxoSmithKline has reached a 5-year compliance agreement with the Department of Health and Human Services. Under terms of the deal, according to department Inspector General Daniel R. Levinson, company executives could forfeit annual bonuses if they or their subordinates engage in significant misconduct, and sales agents are now being paid based on quality of service rather than sales targets.

GlaxoSmithKline said in a statement that the settlement will be funded through existing cash resources.

CEO Andrew Witty said in a statement

“On behalf of GSK, I want to express our regret and reiterate that we have learnt from the mistakes that were made,” CEO Andrew Witty said in a statement, adding that the company has changed its procedures for compliance, marketing and selling since the incidents.

What Mr. Witty is really saying is “We deliberatly broke the law.  We regret we got caught. In the future, we will be more careful not to get caught.

More information on the setlement can be found on this website: http://us.gsk.com/html/media-news/settlement-press-kit.html.

Shares of GlaxoSmithKline stock rose 1.3% in Monday trading. Imagine that!

When are we going to get mad enough?

Do you think this is an isolated case?  I think not.  these deceptive, illegal practices are standard proceedure at many Drug companies.  While we all know, corporations are supposed to make profits for their stakeholders.  Is it too much to ask to get factual, timely and comprehensive informatioon so that Doctors and Patients around the world can get healthy while drug companies make obsene fortunes?

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About CareMan
I am the CareMan, have been for 7 years now. I really do care about YOU and getting YOU back to great, natural health, so long as you have an open mind.

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