GSK Settles With U.S. Government

GlaxoSmithKline has reached an agreement in principle with the U.S. government to resolve multiple investigations into company compliance, marketing, and selling practices. The $3 billion settlement will conclude an investigation into GSK’s marketing practices begun in 2004 by the U.S. Attorney’s Office in Colorado; the Department of Justice’s investigation of inappropriate use of a Medicaid rebate; and Justice’s probe into the marketing of the diabetes drug Avandia. “This is a significant step toward resolving difficult, long-standing matters which do not reflect the company that we are today,” says GSK CEO Andrew Witty.