Pharmaceutical giant GlaxoSmithKline LLC(GSK) agreed to pay nearly $41 million to 38 states to settle allegations of substandard drug manufacturing at its Puerto Rico subsidiary.
The investigation was led by Illinois and Oregon attorneys general, Lisa Madigan and John Kroger.
California Attorney General Kamala Harris and 37 other state attorneys general announced the settlement deal Friday with Glaxo and its subsidiary SB Pharmco Puerto Rico, Inc. She said California will receive $3.3 million from the deal, the largest among the states.
The deal resolves state claims in San Diego Superior Court that Glaxo and its subsidiary engaged in deceptive practices in the manufacture and distribution of anti-nausea drug Kytril, an antibiotic Bactroban, antidepressant Paxil and diabetes drug Avandamet.
The states alleged the manufacturing processes were substandard. As part of the deal the company agreed not to make false, misleading or deceptive claims about drugs formerly made at the Puerto Rico facility. Drugs are no longer made at the Puerto Rico plant, according to Harris’ statement.
Case: People v. GlaxoSmithKline, No. 37-2011-93381 (San Diego Sup. Ct.)