GSK to pay $750 million on defective drug charges

GlaxoSmithKline agreed to pay $750 million to settle criminal and civil charges that the pharmaceutical company manufactured defective drugs.

GlaxoSmithKline agreed to pay $750 million to settle criminal and civil charges that the pharmaceutical company manufactured defective drugs.

GSK, which prosecutors said also made knowingly false claims about the defective drugs to federal healthcare programs, has since closed the manufacturing plant in Puerto Rico. Cheryl Eckard, a former manager of quality assurance for the company's plant, later became a whistleblower in the lawsuit.

An advocacy group reported that the number-one industry involved in fraud-related settlements with the Department of Justice is pharmaceuticals, with eight pharmaceutical companies making up the top 10 fraud-related settlements in the last year.

The Justice Department announced in September that Allergan agreed to pay $600 million to settle civil and criminal allegations that the company illegally marketed Botox for off-label uses.

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