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GlaxoSmithKline

2011 Criminal and Civil Investigations Settlement

Date: 11/03/2011 (Date of Settlement Announcement)

Misconduct Type: Health

Enforcement Agency: Multiple Agencies

Contracting Party: None

Court Type: Civil

Amount: $3,000,000,000

Disposition: Settlement

Synopsis: In November 2011, GlaxoSmithKline announced it would set aside $3 billion to resolve criminal and civil investigations into marketing practices with regard to its Avandia diabetes drug, a Department of Justice investigation of its Medicaid pricing practices, and a nationwide investigation into the sales and marketing of nine of its products from 1997 to 2004. Under the settlement, the terms of which were finalized in 2012, GSK agreed to pay $3 billion in fines and penalties and plead guilty to three criminal counts. GSK also executed a five-year corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG) requiring GSK to implement major changes to the way it compensates its sales force and to implement greater transparency in its research practices and publication policies.