A lawsuit brought by New York State Attorney General Eliot Spitzer on behalf of 49 states has been settled by pharmaceutical giant GlaxoSmithKline (GSK).
GSK, the worldÃ¢â‚¬â„¢s second largest drug company, has agreed to pay 14 million to dispose of charges it fraudulently tried to delay competitors from marketing a generic version of its anti-depressant drug Paxil (also marketed as Seroxat) though frivolous patent-infringement lawsuits.
Although the settlement will serve to end the fraud suit against it, GSK denies any wrongdoing or liability. The companyÃ¢â‚¬â„¢s position is that: “We made the decision that settling was appropriate to avoid the expense and distraction of protracted litigation.”
The settlement covers the cost of purchases of Paxil by Medicaid.
In a statement from Jay Nixon, the Missouri Attorney General said: “GSK used the courts to hold onto a monopoly for a popular drug and the end result was that consumers – including Medicaid – paid more than they should have.”Ã‚Â