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Avandia Manufacturer Settles Healthcare Fraud for $3 Billion

GlaxoSmithKline, Manufacturers of Avandia and Other Pharmaceuticals, Pleads Guilty and Settles Healthcare Fraud Case for $3 Billion

AvandiaThe pharmaceutical manufacturer behind faulty blockbuster drugs like Avandia, Wellbutrin, and Paxil has agreed to plead guilty in a healthcare fraud lawsuit, and will pay $3 billion to the US government, in the largest healthcare fraud settlement in US history, according to the Department of Justice.

The $3 billion settlement will resolve criminal and civil liability from the company for unlawful promotion of certain prescription drugs. Criminal charges against the company include three counts of criminal information – two counts of misbranding antidepressant drugs Wellbutrin and Paxil, and one count of failing to report safety data about the dangerous diabetes drug Avandia to the FDA, as required by federal law.

Resolving the criminal complaints will only cost GlaxoSmithKline $1 billion, however. The remaining $2 billion will resolve numerous civil complaints and personal injury lawsuits against the pharmaceutical manufacturer for health problems directly related to Avandia, Wellbutrin, Paxil, and other drugs, and will also resolve allegations of pricing fraud.

The DOJ claimed that GlaxoSmithKline knew about problems with their diabetes drug, Avandia, but failed to report the problems between 2001 and 2007. Since reports came in about the drug’s dangerous side effects, the FDA has required that Avandia feature a black box warning, which is the strongest indicator to patients and doctors that the drug has very harmful side effects. However, before the warning was issued, numerous patients with Type 2 diabetes were prescribed Avandia, and have since suffered other health problems.

“Today’s multi-billion dollar settlement is unprecedented in both size and scope. It underscores the Administration’s firm commitment to protecting the American people and holding accountable those who commit health care fraud,” James M. Cole, deputy attorney general, said in a statement. “At every level, we are determined to stop practices that jeopardize patients’ health, harm taxpayers, and violate the public trust – and this historic action is a clear warning to any company that chooses to break the law.”

The Strom Law Firm Can Help with Avandia Personal Injury Lawsuits

Did you or a loved one suffer any of the following injuries?

  • Undergoing treatment for Congestive Heart Failure
  • Heart Attack
  • Stroke
  • Congestive Heart Failure resulting in death

Avandia side effects can be mild or, in some cases, can even cause death. The way your body reacts to Avandia depends on a variety of factors – your overall health and medical history for instance.

The pharmaceutical liability lawyers at The Strom Law Firm, LLC are at the forefront of the fight to protect the public and will stand up for your rights against the big drug and insurance companies that produce dangerous drugs and products like Avandia. We will fight to ensure that you and your loved ones receive the justice you deserve.  Contact our defective drug and wrongful death attorneys at the Strom Law Firm, LLC today for a free consultation to discuss the facts of your case as well as your legal rights. Contact us today. 803.252.4800.

About Pete Strom

Defending criminal charges including drug crimes, DUI, CDV, mail fraud, wire fraud, bank fraud, computer crimes, money laundering, and juvenile crimes, Pete also handles Federal and State investigations. Representing individuals in Civil Matters including Class Actions, Personal Injury, Qui Tam Actions, Defective Products, Nursing Home Neglect, and Professional Licensing Defense cases. Joseph Preston “Pete” Strom, Jr., the managing partner at Strom Law Firm, L.L.C., has been fighting for justice since 1984.

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