BOISE – Idaho will receive $1.6 million as part of its share of a historic legal settlement with a British drug maker, according to Idaho Attorney General Lawrence Wasden.
Pharmaceutical giant GlaxoSmithKline has agreed to plead guilty to misdemeanor fraud charges and pay a fine of $3 billion in order to settle the largest healthcare fraud case in U.S. history.
Justice Department prosecutors claimed that GSK broke laws during the development and marketing of several of its most well known medications.
GSK was accused of withholding safety data on its diabetes drug Avandia, marketing the antidepressant Paxil to underage patients and providing what amounted to illegal kickbacks to doctors who prescribed the drugs.
Glaxo agreed to compensate various federal healthcare programs, including Medicaid, for harm allegedly suffered as a result of the illegal conduct.
Idaho’s share of the settlement is $1,610,426.76. $732,750 in restitution will be returned to the Idaho Medicaid program, and $877,679 will be deposited in the state general fund for appropriation by the Legislature.