Glaxosmithkline $3 bn Settlement

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Case Details:


Case Code : BECG126 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges


Business Ethics / Corporate Law
Case Length : 21 Pages
Period : 1998-2012
Organization : GlaxoSmithKline
Pub Date : 2013
Teaching Note : Available
Countries : US
Industry : Pharmaceutical Industry


GlaxoSmithKline (GSK) pleaded guilty to criminal charges for allegedly promoting its drugs for unapproved uses and failing to report on the safety data about its top selling diabetic drug Avandia, to the Food and Drug Administration (FDA). GSK entered into a settlement agreement with the US Department of Justice and agreed to pay $3 billion to absolve from criminal and civil liability relating to the allegation concerning the nine drugs namely Paxil, Wellbutrin, Advair, Lamictal, Zofran, Imitrex, Lotronex, Flovent, and Valtrex, failure to report safety data for the drug Avandia, and failure to report the best price for certain drugs.

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Whistleblowers and the US Justice Department alleged that from 1999 through 2010, GSK was engaged in a fraudulent scheme to deceive and defraud patients, regulators, and federal health programs. The case brings to light the issues and circumstance which led to the lawsuit being filed against GSK and the issues in question in the pharmaceutical industry. The case also brings out the important role played by the whistleblowers in bringing out the unethical practices in the business.


To comprehend the business segments of GlaxoSmithKline
To discuss and analyze the essential values and norms pharmaceutical companies should follow
To analyze the ethical issues involved in marketing and promoting pharmaceutical drugs
To debate whether to punish top executives or the firm for the malpractices


  Page No.
Introduction 1
GlaxoSmithKline 3
Business Segments 3
Whistleblowers 3
The Drugs in Question 7
Wellbutrin 10
Avandia 11
Other Drugs 12
The Settlement 13
Toward Becoming More Responsible 14
Exhibits 16


Activity Deficit Hyperactivity Disorder (ADHD), Advair, Amerge, American Medical Association, Andrew Witty, Avandia, Cidra Plant, Civil Liabilities, Consumer Healthcare, Corporate Integrity Agreement, Eckard, Emerging Markets, Europe Pharmaceutical and Vaccines, False Claim Act, Food and Drug Administration (FDA), GlaxoSmithKline, Healthcare Fraud, Illegal Market Practices, Imitrex, Lamictal, Medicaid, Off-label promotions, Over-the-counter, Paxil, Pharmaceutical, Pharmaceuticals, Tricare, US Justice Department, US Pharmaceutical and Vaccines, Vaccines, Valtrex, ViiV HealthCare, Wellbutrin, Whistleblower, Zyban

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