Drug maker pays $45 million to settle Louisiana litigation - FOX 8 WVUE New Orleans News, Weather, Sports

Drug maker pays $45 million to settle Louisiana litigation

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Baton Rouge, La. - Louisiana's Attorney General Buddy Caldwell says the state will get $45 million from GlaxoSmithKline (GSK) to settle Medicaid fraud lawsuits and deceptive marketing allegations related to its popular diabetes drug, Avandia, and other medications.

Caldwell's office says the agreement is the largest such pharmaceutical recovery ever received by the state.

"Today's multi-million dollar recovery is historic for Louisiana and marks an important victory for our consumers who have every right to know about the risks and negative side-effects of prescription drugs," said Attorney General Caldwell. "These kinds of deceptive tactics and misrepresentations will not be tolerated in this state, and violators like GSK will be held accountable."

The agreement was announced on Friday in the 19th Judicial District Court.

Louisiana Department of Health and Hospitals Secretary Kathy Kliebert said, "It is critical that companies accurately represent medications that consumers rely on for treatment. We are pleased that the Attorney General's Office was able to reach this settlement, and we are hopeful that this sends a strong message that we will not let companies misrepresent products that directly impact the health and well-being of Louisiana citizens."

Attorney General Caldwell said, "By pursuing GSK on our own, we have recovered 20 times more money for the state of Louisiana than we would have in the multi-state settlement approved last November."

In a news release issued by Caldwell's office, "the settlement also resolves claims relating to the drugs Paxil, Wellbutrin, Advair, Lamictal, Zofran, Imitrex, Lotronex, Flovent and Valtrex for off-label, non-covered uses in violation of state laws."

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