Criminal Prosecution of GlaxoSmithKline
In 2003, GlaxoSmithKline (GSK), settled its civil liability under the Fraudulent Claims Act for repackaging Paxil (an anti-depressant) and Flonase (a nasal spray) for sale at deep discounts to the same large HMO. Again, the company concealed these discounts, and so underpaid rebates due to the Medicaid program. GSK agreed to pay more than $87 million, and to comply with the terms of a Corporate Integrity Agreement designed to ensure that GSK will accurately reports its "best price" information to the government in the future.
Source: HHS Health Care Fraud and Abuse Control Program, Annual Report for FY 2003
This article was posted on December 25, 2005.