GlaxoSmithKline Pays $750 Million Fine for Selling Shoddy Drugs

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Photo: Jeff J Mitchell/Getty Images

The British drug giant reached a deal with the Justice Department, pleading guilty to a felony and paying $150 million for knowingly allowing contaminated drugs, including baby oil and the anti-depressant Paxil, manufactured at a plant in Puerto Rico to reach the American market. They paid another $600 million in civil penalties, and prosecutors indicated that they would continue to press forward and possibly charge individuals.

The suit was originally filed by Cheryl Eckard, a quality manager who blew the whistle after she was fired after raising concerns about safety. She gets a cut of $96 million.

Glaxo to Pay $750 Million for Sale of Bad Products [NYT]
Glaxo to Pay $750 Million in Pact; Whistleblower Due Big Payment [WSJ]