Drug company fined record amount in U.S. healthcare fraud

7:27 PM, Jul 2, 2012   |    comments
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NEW YORK -- British drug maker GlaxoSmithKline will pay a $1 billion criminal fine and $2 billion to settle civil claims for illegal actions involving 10 drugs, in the biggest U.S. healthcare fraud settlement ever.

The case started in 2003 with claims by multiple Glaxo sales reps that they were being told to press doctors to prescribe drugs for unapproved uses, including uses involving young children. The drug maker also was accused of not disclosing dangers of diabetes drug Avandia, and of overcharging Medicaid for drugs.

Glaxo agreed to let government officials monitor its activities for five years.

(Copyright 2012 by Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)