GlaxoSmithKline unit to pay $750 million penalty – Oct. 26, 2010.

Glaxo will pay a criminal fine of $150 million and civil penalties totaling $600 million to federal and state authorities, the U.S. Justice Department said.

The drugs, made at a Glaxo facility in Cidra, Puerto Rico between 2001 and 2005, are Kytril, Bactroban, Paxil CR and Avadament. They are used to treat infection, nausea, depression and Type II diabetes.

In addition, prosecutors said Glaxo knowingly made false claims to federal health care programs such as Medicaid regarding the drugs in question.

The whistle blower in the civil case, Cheryl Eckard, will be awarded about $96 million of the fines that Glaxo will pay to the federal government.

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