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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
GlaxoSmithKline
Kentucky Kytril and Zofran Average Wholesale Price Lawsuit
Date: 08/30/2010 (Date of Settlement Announcement)
Misconduct Type: Defective Pricing
Enforcement Agency: State/Local
Contracting Party: None
Court Type: Civil
Amount: $3,750,000
Disposition: Settlement
Synopsis: GlaxoSmithKline agreed to pay the Commonwealth of Kentucky $3.75 million to settle allegations of deceptive or false marketing of the anti-nausea drugs Kytril and Zofran. Kentucky alleged that GSK improperly inflated the average wholesale price (AWP) for the drugs, causing Kentucky’s Medicaid program to pay millions of dollars more in reimbursements than it should have. Despite the fact that GSK was found liable in an earlier trial, GSK was allowed to settle without admitting any liability or wrongdoing.
