GlaxoSmithKline Reaches $105M Settlement With 44 States

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GlaxoSmithKline Reaches $105M Settlement With 44 States
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Just last month, Chinese police charged three employees of GlaxoSmithKline plc (ADR) (NYSE:GSK) (LON:GSK) in an elaborate bribery scheme that drove up prices in its fast-growing China market and accused the drug-maker of receiving over $150 million in illegal revenues. While former China chief Mark Reilly has not been detained, the two Chinese executives — Mr. Zhang, the company’s human resources director, and Mr. Zhao, the head of the legal affairs department — are being held in China and are expected to face prosecution.

GlaxoSmithKline’s unlawful marketing of three drugs

The three drugs that the company is accused of unlawfully marketing are asthma medication Advair and anti-depressants Paxil and Wellbutrin. While the company hasn’t admitted any wrongdoing it has agreed to settle the accusations with California receiving the biggest payout at around $7.1 million.

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