LITTLE ROCK — Arkansas will receive nearly $2.1 million in a national settlement with GlaxoSmithKline to resolve allegations that the pharmaceutical company engaged in illegal marketing and pricing practices related to some of the drugs it manufacturers, the state attorney general’s office said Monday.
Arkansas’ share is part of a $3 billion national settlement. GSK will pay $2 billion in damages and civil penalties to the federal government and several states, and an additional $1 billion fine in connection with federal criminal charges related to drug labeling and FDA reporting, according to a news release.
Attorney General Dustin McDaniel said the Arkansas Medicaid program will receive $2.065 million from the settlement. With federal matching funds added, about $7.6 million will go to Arkansas Medicaid, he said.
McDaniel has drawn criticism from some legislators for his discretionary distribution of funds from legal settlements.
As part of the settlement, filed in the U.S. District Court of Massachusetts, GSK also agreed to plead guilty to criminal charges that it violated the federal Food, Drug and Cosmetic Act.
The state and federal governments alleged in a lawsuit that GSK unlawfully marketed certain drugs, including the anti-depressants Paxil and Wellbutrin, for uses for which the drugs were not approved by the FDA.
The lawsuit also said the company made false representations regarding the safety and efficacy of the drugs, offered kickbacks to medical professionals and underpaid rebates owed to government programs for various drugs paid for by Medicaid and other federally-funded health care programs.