British Pharmaceutical Company Settlles Bad Drug Case for $750 million
GlaxoSmithKline PLC, a London based pharmaceutical company, will pay $750 million in a settlement agreement for allegations that the company knowingly manufactured and sold "adulterated drugs". Federal prosecutors from Massachusetts recently confirmed the settlement agreement. "Adulterated" basically means adding an element to the drug that gives it poorer quality. $150 million is allocated to criminal fines and $600 million will go towards civil fines.
The investigation began because a former employee, Cheryl Eckard, went to the Food and Drug Administration (FDA) and reported violations. Ms. Eckard was the company's quality assurance manager and, while she was visiting the Puerto Rico plant in 2002, she discovered the company committing several FDA violations.
For instance, she discovered that the water system was contaminated and that the air system allowed for cross-contamination among several products being manufactured there. She allegedly reported the problems to her superiors, but no action was ever taken. Therefore, she went to the FDA as a whistleblower and later filed a whistleblower lawsuit.
The allegations in the complaint asserted that the company allowed several drugs to be adulterated over a five year period beginning in 2001. Among the products adulterated were Paxil CR, Bactroban, Kytril, amd Avandamet. To learn more about this article, visit GlaxoSmithKline settles bad drug case for $750M.
If you live in North Florida and have questions about whistleblower status, product liability or corporate compliance, please contact Wood, Atter & Wolf, P.A., a Jacksonville, Florida law firm.
