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GSK’s Deal With DoJ Is Fourth In Eight Years; Exec Liability Uncertain

Executive Summary

GlaxoSmithKline PLC’s toughest negotiations this year have been with the federal government.

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GSK’s DoJ Settlement Links Executive Bonus To Continued Compliance

GlaxoSmithKline pleads guilty to marketing Paxil and Wellbutrin off-label and concealing Avandia safety data from FDA and resolves allegations of kickbacks involving nine drugs; ground-breaking corporate integrity agreement includes novel recoup of bonuses from execs if they or their subordinates engage in “significant misconduct.”

GSK’s DoJ Settlement Requires Execs To Forfeit Bonuses If Misconduct Occurs

GlaxoSmithKline pleads guilty to promoting Paxil and Wellbutrin off-label and failing to report Avandia safety data to FDA; civil portion of settlement resolves off-label and kickback allegations involving nine products. New corporate integrity agreement gives OIG authority to require a recall.

The Era Of Billion Dollar Pharma Settlements

Abbott Laboratories is the third pharmaceutical company to reach a settlement with the Department of Justice in excess of $1 billion. A look at the deals struck since Eli Lilly began the billion dollar club in 2009 shows the activities the government is investigating and the level of liability that companies face.

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