Reuters: Most Read Articles: GlaxoSmithKline settles healthcare fraud case for $3 billion

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GlaxoSmithKline settles healthcare fraud case for $3 billion Jul 2nd 2012, 15:42 Tweet Share this Email Print Related News GlaxoSmithKline settles fraud charges for $3 bln 10:44am EDT Analysis & Opinion NY appeals court gives big boost to BofA in MBS put-back suits New U.S. court rulings may add to costs, risks of finance industry regulatory enforcement A GlaxoSmithKline logo is seen outside one of its buildings in west London, February 6, 2008. Credit: Reuters/Toby Melville WASHINGTON | Mon Jul 2, 2012 11:42am EDT WASHINGTON (Reuters) - GlaxoSmithKline Plc has agreed to plead guilty to misdemeanor criminal charges and pay $3 billion to settle the largest case of healthcare fraud in U.S. history. The settlement includes $1 billion in criminal fines and $2 billion in civil fines in connection with the sale of the drug company's Paxil, Wellbutrin and Avandia products, according to filings in federal court on Monday. Deputy U.S. Attorney General James Cole said at a news conference in Washington that the settlement "is unprecedented in both size and scope." As part of the settlement, GlaxoSmithKline agreed to strict oversight of its sales force by the U.S. government to prevent the use of kickbacks or other prohibited practices. GSK said in a statement it would pay the fines through existing cash resources. The company announced a $3 billion charge in November related to legal claims. Chief Executive Andrew Witty said GSK's U.S. unit has "fundamentally changed our procedures for compliance, marketing and selling. When necessary, we have removed employees who have engaged in misconduct." (Reporting by David Ingram and Kate Holton; Editing by Gerald E. McCormick and Maureen Bavdek) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (5) Just shine a light anywhere in corporate america… Jul 02, 2012 11:09am EDT  --  Report as abuse "GSK said in a statement it would pay the fines through existing cash resources. The company announced a $3 billion charge in November related to legal claims." How much of that Existing Cash Resources existed before they took that $3 billion charge in November? Jul 02, 2012 11:50am EDT  --  Report as abuse And again, nobody goes to jail! No one was actually guilty of anything except a faceless corporation. No money comes out of any personal accounts, just out of the bottomless pockets of the shareholders. It won't stop unless the perpetrators have to pay. The criminals get away by paying with the corporations money, not their own. Why should they care and why shouldn't they just do it again? Jul 02, 2012 11:51am EDT  --  Report as abuse See All Comments » Add Your Comment

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