(Wilmington, DE): Attorney General Carl C. Danberg is pleased to announce today, a $14,000,000 multi-state settlement with SmithKline Beecham Corporation d/b/a GlaxoSmithKline (‘GSK’) concerning the drug Paxil. The settlement resolves claims that GSK delayed generic competition by fraudulently listing and prosecuting litigation concerning Paxil, a drug that GSK sells and is used to treat depression, anxiety, and obsessive-compulsive disorders.
The settlement secures recovery for the state, primarily for Medicaid purchases that are excluded from the private class action Nichols v. SmithKlineBeecham Corp., No. 00-CV-6222 (E.D. Pa.). Medicaid is the most significant state purchaser excluded from the class action settlement, representing over 90% of such purchases. Purchases made by the states in connection with other programs, such as those for indigent care, are also included within the state settlement. The settlement proceeds will be distributed pro rata among the states based on each state’s purchases. The State of Delaware will receive over $46,000.00 in settlement proceeds.
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