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Alaska Beat

Alaska to receive $1.4 million in largest healthcare fraud settlement in US history

  • Author: Craig Medred
  • Updated: September 27, 2016
  • Published August 29, 2012

The largest healthcare fraud settlement in U.S. history has been reached between pharmaceutical giant GlaxoSmithKline and various state and federal governments, and Alaska is set to receive a small slice of the pie.

Alaska Attorney General Michael C. Geraghty's office announced Tuesday that GlaxoSmithKline has agreed to pay $3 billion to resolve claims that it illegally marketed and priced drugs it manufactures.

The company will pay $2 billion in damages and civil penalties, and an additional $1 billion criminal fine in connection with the allegations of illegal conduct.

GlaxoSmithKline allegedly engaged in a variety of unlawful activities. Among them are allegations of marketing various drugs for off-label uses, including marketing the depression drug Paxil for use by children and adolescents, and marketing the depression drug Wellbutrin for weight loss. The company also allegedly offered kickbacks to healthcare professionals to promote various prescriptions, which included cash, travel, and entertainment.

Additionally, the company is alleged to have submitted incorrect pricing data for various prescriptions, which subsequently underpaid rebates owed to federal healthcare programs, including Medicaid.

GlaxoSmithKline pled guilty to criminal charges that it violated the federal Food, Drug and Cosmetic Act, as part of the settlement.

Alaska will receive $1.4 million in recoveries.

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