Glaxo pays $229M to settle state lawsuits

Posted: July 27, 2013

Drugmaker GlaxoSmithKline P.L.C. has agreed to pay $229 million to eight states to settle civil lawsuits related to the development and marketing of the diabetes drug Avandia and a separate suit by Louisiana related to other products.

Glaxo's headquarters is in London but it operates in Philadelphia and surrounding areas.

The company admitted no wrongdoing and disclosed the agreement in a filing with the Securities Exchange Commission.

Avandia was approved by the FDA to treat type 2 diabetes, but later faced greater restrictions because of reports that it caused increased risk of heart attacks.

Kentucky, Mississippi, Maryland, South Carolina, New Mexico, West Virginia and Utah had opted out of a November 2012 settlement that included 37 states and the District of Columbia.

Pennsylvania and New Jersey were part of the earlier agreement. In July of 2012, Glaxo paid $3 billion to settle a federal government investigation that involved disclosure of Avandia clinical trial information. - David Sell

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