Processing Magazine

GlaxoSmithKline Whistleblower to Receive $96 Million

October 27, 2010
Reuters reports, GlaxoSmithKline has agreed to pay $750 million and plead guilty to manufacturing and distributing adulterated drugs from a now closed plant in Puerto Rico, the U.S. Justice Department said. GlaxoSmithKline had said in July it reached an agreement in principle relating to quality problems at its Puerto Rico plant and would pay $750 million to resolve the allegations. Of the $750 million, Glaxo will pay $600 million to settle allegations that, because the drugs were adulterated, false claims for reimbursement were submitted to government healthcare programs. The drugs were made at the plant between 2001 and 2005. The Justice Department said, the company was accused of failing to ensure the drugs were properly manufactured at the plant and effective. Under the plea agreement, SB Pharmco Puerto Rico will plead guilty to a felony of releasing adulterated medicines and pay a $150 million criminal fine that includes forfeiture of $10 million in assets. A whistleblower who filed a lawsuit under the U.S. False Claims Act will receive about $96 million from the federal share of the settlement, the Justice Department said. A federal judge must approve the plea agreement.

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