GSK Agrees to Pay $3 Billion in Healthcare Fraud Case

Psychiatrists who enjoyed free deep-sea fishing and golf at educational forums sponsored by drug maker GlaxoSmithKline more than a decade ago could have hardly known at the time that they were witnessing history. In 2012, however, what happened at those meetings is clear. Federal prosecutors have announced that GSK has agreed to pay the government $3 billion in what they call the largest healthcare fraud settlement ever in the U.S. The company pled guilty to criminal misdemeanor charges of illegally promoting off-label uses of 2 psychiatric drugs — paroxetine (Paxil) and bupropion (Wellbutrin) — to physicians, and failing to report negative safety data to the FDA about the diabetes drug rosiglitazone (Avandia).