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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

Average Wholesale Price (AWP) Drug Litigation

Date: 09/06/2002 (Date of Filing)

Misconduct Type: Antitrust

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $70,000,000

Disposition: Settlement

Synopsis: A class-action lawsuit was filed in federal court in Massachusetts against GlaxoSmithKline and 22 other pharmaceutical companies alleging consumers are harmed by the way the companies price their drugs. The companies set prices using the Average Wholesale Price (AWP) formula. The government uses average wholesale prices as reported by drug companies to set reimbursements from federal health programs. Plaintiffs claim drugmakers artificially inflated their prices as part of a scheme to overcharge consumers. In August 2006, GlaxoSmithKline agreed to a proposed $70 million settlement.