A recent agreement made by GlaxoSmithKline illustrates the depth of damages that can arise from personal injury lawsuits over defective products and failure to warn consumers. According to the New York Times, this agreement stipulates that the company will pay $3 billion to settle allegations of illegal drug marketing and fraud against Medicaid.
This is the largest pharmaceutical settlement to date, breaking previous records of $2.3 billion and $1.4 million settlements. The product that was the focus of this lawsuit is the drug Avandia and the company’s methods of marketing it to doctors. Also under legal scrutiny by the U.S. Justice Department were the company’s alleged manipulation of research. Continue reading