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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

Avandia Marketing, Sales Practices and Products Liability Litigation

Date: 12/17/2007 (Date of Larosa Filing)

Misconduct Type: Health

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $770,000,000

Disposition: Settlement

Synopsis: The family of Milagros Larosa sued GlaxoSmithKline (GSK), claiming its diabetes drug Avandia was responsible for Larosa’s fatal stroke in December 2005. The Larosas accused GSK of causing her wrongful death due to negligence, breach of warranty, fraud, and failing to warn about the risks of Avandia. In November 2007, the Food and Drug Administration (FDA) announced a second “black box” warning would be added to the Avandia label advising users of its cardiovascular risks. In 2008, Larosa’s case was transferred to a federal court in Pennsylvania and consolidated with a national class action. In May 2010, it was reported that GlaxoSmithKline settled with more than 700 plaintiffs for $60 million. In July 2010, it was reported that GSK settled approximately 10,000 additional lawsuits for $460 million. In February 2011, it was reported that GSK settled 5,500 additional lawsuits for $250 million. In February 2012, it was reported that GSK settled more than 20,000 more cases for an undisclosed amount.