(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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(Wilmington, DE): The Medicaid Control Unit of the Delaware Attorney General’s Office has reached an agreement with King Pharmaceuticals, Inc., a pharmaceutical company that incorrectly reported prices to the government for several of its drugs and, as a result, paid millions of dollars less in rebates to government entities, including state Medicaid programs. As a result, King Pharmaceuticals, Inc. will pay out $124 million in settlements with forty-nine states and the federal government.

King Pharmaceuticals, Inc., with its headquarters in Tennessee, is a manufacturer of generic drugs. It first entered into civil agreements to address allegations that, from 1994 through 2002, it had not accurately calculated drug prices reported to the federal government for the purposes of establishing rebates due to state Medicaid programs under the federal Medicaid drug rebate statute. As a result, Medicaid and other programs that were due rebates were underpaid some $62 million nationwide.

As part of the settlement, Delaware will recover $217,921.75 for the Delaware Medicaid Program; $122,586.37 of that amount will be paid directly to Delaware, with the balance going to the federal government to reimburse its share of the Medicaid costs.

The civil settlements with King Pharmaceuticals, Inc. further require the company to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services, in order to monitor the companys operations and ensure compliance with the law in the future.

The National Association of Medicaid Fraud Control Units state settlement team was led by the Directors of the Delaware, Florida and Missouri Medicaid Fraud Control Units and Assistant Attorneys General from Massachusetts and New York.

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(Wilmington, DE): Attorney General Carl C. Danberg announced today that he has joined with 22 other Attorneys General in reaching a settlement with Time, Inc. concerning their marketing and billing practices. As a result of the settlement, Time, Inc. will refund over four million dollars to 108,000 consumers in the 23 participating States. Time will refund approximately $22,000 to five hundred eligible consumers in Delaware.

Time will also pay 4.5 million dollars to the States for costs and fees incurred during the investigation. Delaware will receive $350,000 which will be used to help protect the public against consumer fraud and deceptive trade practices through investigation of such practices, enforcement actions to insure compliance with the law, and consumer education. Delaware is one of seven states that will receive a significant portion of the settlement funds due to the work and efforts expended by the Attorney General’s Consumer Protection Unit to resolve this investigation and reach an agreement. Most of the States that participated in the settlement will receive $75,000.

The States investigated Times automatic renewal offers, billing and collection procedures, and marketing materials. Consumers complained that Time did not adequately inform them that their magazine subscriptions would automatically renew unless cancelled. If consumers did not cancel, Time added the subscription renewal cost to their credit cards or aggressively billed them. Consumers also complained that they received advertisements from Time that appeared to be bills for magazines they had not ordered. As a result of the investigation, the States concluded that Times practices mislead some consumers into paying for unwanted or unordered magazine subscriptions.

Time, Inc. denied the States’ allegations but agreed to clearly and conspicuously disclose to consumers all the material terms for automatic subscription renewals. For the next five years, consumers will have the option of selecting automatic renewal. Before the end of the subscription period, Time will send customers written reminders of the automatic renewal, their right to cancel the subscription, and the procedure for cancellation.

Time will honor all requests to cancel subscriptions as soon as reasonably possible and will not submit unpaid accounts of automatic renewal customers for third party collections. If consumers are charged for magazines they did not order, Time will refund the subscription price. Time also agreed not to mail subscription solicitations to consumers that resemble bills, invoices or statements of accounts due.

Within the next three months, Time will send State-approved refund letters and claim forms directly to eligible consumers. As Time will be identifying eligible consumers from their records, there is no need for consumers to contact the Attorney General’s office to qualify for a refund. The letters will explain the settlement and contain instructions on how to apply for refunds. Consumers should look for an envelope from Time that says “REFUND OFFER ENCLOSED.” If consumers have any questions, they may call the Attorney General’s Office Consumer Protection Unit at 800-220-5424.