Tuesday, July 3, 2012

Idaho Will Receive $1.6 Million In Glaxo Settlement

Posted By on Tue, Jul 3, 2012 at 11:19 AM

In the wake of GlaxoSmithKline's record fine to settle the biggest health care fraud case in United States history, Idaho is in line to receive $1.6 million from the pharmaceutical giant. The settlement resolves allegations that Glaxo engaged in illegal schemes relating to the marketing and pricing of its drugs.

Idaho Attorney General Lawrence Wasden announced this morning that $732,750 will be returned to the Idaho Medicaid program while $877,679 will be deposited in the state's general fund for appropriation by the Idaho Legislature.

As part of the settlement, Glaxo also agreed to plead guilty to criminal charges that it violated the Food, Drug and Cosmetic Act. The government alleged that Glaxo introduced Wellbutrin and Paxil into interstate commerce when the drugs were misbranded. Additionally, feds alleged that Glaxo offered kickbacks, including entertainment, cash, travel and meals to health care professionals to induce them to promote and prescribe drugs such as Wellbutrin, Paxil, Advair, Lamictal, Zofran and Imitrex.

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