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California Employment Law Blog

Glaxo to pay $3 Billion to Settle False Claim Charges

Posted by Stephen Danz on Dec 28, 2012 | 0 Comments

In one of the largest whistle blower settlements in US history,GlaxoSmithKline PLC will pay the US government $3 Billion to settle charges that the company defrauded Medicaide and illegally marketed certain drugs. Drugs covered by the settlement include Avandia (a diabetes drug), Paxil and Wellbutrin (anti-depressants). These drugs were marketed for “off label” purposes (that is, not approved by the FDA). This practice is referred to as “off labeling” The Chairman of Glaxo, Andrew Witty issued a statement saying “The #3 billion settlement “is a significant step toward resolving difficult, longstanding matters which do not reflect the company that we are today.”

Under the Federal False Claims Act, individuals who report wrongdoing against the government or third parties, are entitled to a share of the proceeds of any settlement or judgment, along with attorney fees. Danz & Associates has represented whistle blowers in many industries, including health care and aerospace, with recoveries to the government in the millions of dollars.  Recently passed legislation such as the Dodd Frank Wall Street Reform and Consumer Protection  Act have broadened the avenues for employees to share in financial settlements by their employers. The area of law is highly technical and details count! Consult a qualified attorney while you are still employed so that the proper steps can be taken to preserve your rights.

About the Author

Stephen Danz

Stephen Danz has over 30 years of practical legal experience, trying hundreds of cases within that time. Regularly appearing before the state and federal courts throughout the state of California, Mr. Danz has earned a reputation as a leading attorney for plaintiffs employment law. He is admitted to practice law in ALL federal and state courts of California. For the federal bar, that includes the Northern, Southern, Eastern and Central Districts of California. He is authorized to practice in all 52 counties of California.


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