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Maine nets $4.4M in GlaxoSmithKline settlement

July 3, 2012 | last updated July 3, 2012 10:59 am

Maine is receiving more than $4 million in the massive, $3 billion settlement with pharmaceutical company GlaxoSmithKline. It's the largest health care fraud settlement in U.S. history.

Maine will receive a total of $4,402,994 in the settlement announced yesterday, according to a press release from Maine Attorney General William Schneider. Under the terms of the settlement, GlaxoSmithKline has agreed to pay $3 billion to resolve allegations of unlawful promotion of certain prescription drugs, failure to report certain safety data and false price reporting practices. Of that amount, $2 billion will go to various states and the federal government for damages and civil penalties to compensate Medicaid and other federal health care programs. GSK has agreed to plead guilty to federal criminal charges relating to drug labeling and U.S. Food and Drug Administration reporting and will pay a $1 billion criminal fine.

The state and federal governments alleged that GSK unlawfully marketed certain drugs for uses for which they were not approved; making false representations regarding the safety and efficacy of certain drugs; offering kickbacks to medical professionals; and underpaying rebates owed to government programs for various drugs paid for by Medicaid and other federally funded health care programs. The drugs involved include Paxil, Advair and Lamictal.