GlaxoSmithKline plc (GSK) has announced that it has reached an agreement with the US Government, multiple states and the District of Columbia to conclude the Company’s most significant ongoing Federal government investigations. The final settlement is a result of negotiations which reached agreement in principle in November 2011. GSK will make payments totalling $3bn which are covered by existing provisions and will be funded through existing cash resources.
The agreement resolves criminal and civil liabilities related to GSK’s sales and marketing practices for nine products.
Its alleged that GSK promoted drugs for unapproved uses and failed to report safety data about a diabetes drug to the Food and Drug Administration (FDA).
In addition, GSK has been found guilty of paying kickbacks to doctors.
"The sales force bribed physicians to prescribe GSK products using every imaginable form of high-priced entertainment, from Hawaiian vacations [and] paying doctors millions of dollars to go on speaking tours, to tickets to Madonna concerts," said US attorney Carmin Ortiz.
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