This Wednesday, April 28, 2010, file photo. shows the GlaxoSmithKline offices in London. GlaxoSmithKline LLC will pay $3 billion and plead guilty to promoting two popular drugs for unapproved uses and to failing to disclose important safety information on a third in the largest health care fraud settlement in U.S. history, the Justice Department said Monday, July 2, 2012.NASHVILLE — Tennessee will get at least $13.5 million from a $3 billion health care fraud agreement involving drug manufacturer GlaxoSmithKline, state Attorney General Bob Cooper announced Monday.
Under the agreement, believed to be one of the largest in U.S. history, the company agreed to pay the money to the federal government and participating states to resolve allegations it engaged in various illegal schemes related to the marketing and pricing of drugs it manufacturers, the attorney general’s office said in a news release.
“Our office is pleased to announce this landmark recovery for Tennessee,” Cooper said in the release. “This office will continue to work diligently with our state and federal partners to stop any company attempting to illegally divert money from TennCare.”
As part of the agreement, the state said, GlaxoSmithKline will pay a total of $2 billion in damages and civil penalties to reimburse various federal health care programs, including Medicaid, for harm allegedly suffered as a result of the illegal conduct.
Moreover, Cooper’s office said, the company has agreed to plead guilty to federal criminal charges relating to illegal drug labeling and Food and Drug Administration reporting. As part of that, GlaxoSmithKline has agreed to pay a $1 billion criminal fine in connection with those allegations, the state says.
State and federal governments alleged the company engaged in a pattern of unlawfully marketing certain drugs for uses that had not been approved by the FDA and making false representations regarding the safety and efficacy of certain drugs.
Officials also alleged the company offered “kickbacks” to medical professionals, including doctors and nurse practitioners, and underpaid rebates owed to government programs for various drugs paid for by Medicaid and other federally funded health care programs.
The kickbacks included entertainment, cash, travel and meals to doctors, nurse practitioners and other health professionals.
Among other things, government officials alleged the company marketed the anti-depression drug Paxil for off-label uses including use by children and adolescents and the anti-depression drug Wellbutrin for off-label uses such as weight loss and sexual dysfunction.
The settlement is based on four whistle-blower actions brought by private individuals based on state and federal false claims acts and filed in or transferred to a federal court in Massachusetts.