Drugmaker Glaxosmithkline ‘Guilty Of Healthcare Fraud’

July 3, 2012 | By
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Glaxosmithkline ‘Guilty Of  Healthcare Fraud’.  Why do corporations only pay fines instead of being prosecuted for criminal acts?

Aljazeera

GlaxoSmithKline Plc, the British drugmaker, has agreed to plead guilty to misdemeanor criminal charges, and pay $3bn to settle what government officials described as the largest case of healthcare fraud in US history.

Monday’s agreement , which still needs court approval, would resolve allegations that the British drugmaker broke US laws in marketing two popular drugs for unapproved uses and to failing to disclose important safety information on a third.

The three billion dollar combined criminal-civil fine will be the largest penalty ever paid by a drug company, James M Cole, deputy attorney general said.

“Let me be clear, we will not tolerate health care fraud,” Cole told a news conference at the Justice Department.

He would not say whether any company executives were under investigation.

GSK agreed to plead guilty to three misdemeanor criminal counts, one each related to the three drugs.

Guilty pleas in cases of alleged corporate misconduct are exceedingly rare, making GSK’s agreement especially unusual.

The company’s guilty plea and sentence have to be approved by a federal court in Massachusetts.

Read the whole story: Aljazeera

 

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Category: COMMERCE, WELL-BEING

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