GSK fined 3 billion dollars for healthcare fraud in US

Global healthcare giant GlaxoSmithKline (GSK) has agreed to plead guilty and pay three billion US dollars to resolve criminal and civil charges of healthcare fraud in the United States, said the US Department of Justice in a statement on Monday. The statement said that the company had illegally promoted prescription drugs, failed to report safety data, and reported false price. Under the agreements, the London-based GSK would pay one billion dollars in criminal fines and forfeitures for illegally marketing and promoting the drugs Paxil and Wellbutrin for uses not approved by the US Food and Drug Administration (FDA), and for failing to report important clinical data about the drug Avandia to the FDA. Additionally, GSK would pay two billion dollars to resolve civil allegations that it caused false claims to be submitted to federal healthcare programs as a result of its illegal promotional practices and payments to physicians. The resolution with both federal and state governments is the largest healthcare fraud settlement in U.S. history and the largest payment by a drug company, said the statement. \"This historic action is a clear warning to any company that chooses to break the law,\" said James Cole, the deputy attorney- general. Meanwhile, GSK CEO Andrew Witty said in a separate statement: \" On behalf of GSK, I want to express our regret and reiterate that we have learnt from the mistakes that were made.\" The final settlement was a result of negotiations and the two sides reached agreement in principle in November 2011, said GSK. The company also stated that the net effect on total earnings was expected to be neutral.