Glaxo Agrees to Settlement Resulting from Whistleblower Lawsuit

By Danielle Briones

Published on September 22, 2005

The case was brought on by a whistleblower lawsuit filed by the home-infusion business Ven-A-Care, a company that has been involved in several similar claims against other pharmaceutical companies.

Under the False Claims Act, individuals who inform authorities the government is being defrauded are eligible for a portion of recovered damages. Ven-A-Care will receive $26 million of the settlement.

According to the government, Glaxo overcharged the government programs for Zofran and Kytril, anti-nausea drugs used for chemotherapy and radiation patients.

The company then undercharged health care providers for the medications, knowing they would pocket the difference and be inclined to prescribe the drug again, the Justice Department says.

A spokesperson for Glaxo says no malfeasance occurred, and that the company agreed to the settlement to avoid the time and expense further litigation would involve.

Glaxo is a defendant in another lawsuit filed by California regulators against 41 pharmaceutical companies alleged to have overcharged that state's Medicaid program.

Comment on this article →