GLAXO TO FORK OVER $3 BILLION TO SETTLE AVANDIA FALSE CLAIMS ACT CASE

GlazoSmithKilne has agreed to pay $3 billion to settle U.S. criminal and civil investigations concerning its improper marketing of Avandia and other drugs for unapproved uses and other matters. The investigation into its marketing of certain drugs was kicked off in 2004 in Colorado and the allegations related to the marketing of drugs which were fraudulently billed to Medicare and Medicaid. It was also charged with improperly influencing physicians to prescribe the drugs.