RI getting $4 mil in drug settlement

PROVIDENCE, R.I. (WPRI) - Major drug company, GlaxoSmithKline, has been slapped with a $3 billion fine -- the largest fraud settlement in U.S. history -- for allegedly engaging in various illegal schemes related to the marketing and pricing of its drugs.

Of the $3 billion, Rhode Island's share is more than $4 million. Most will go to Medicaid in the state -- which is the very program GSK is accused of defrauding.

"Let me be clear: we will not tolerate health care fraud," said U.S. Deputy Attorney General James Cole at a news conference Monday.

Federal authorities say the company marketed drugs for uses that are not approved by the FDA -- known as "off-label" use. Among them:

• Depression drug Paxil was marketed to be used for children, in unapproved ways
• Depression drug Wellbutrin was marketed to be used for weight loss treatment
• Nausea drug Zofran was marketed to be used for pregnancy-related nausea

Rhode Island Assistant Attorney General Jim Dube said not only did the company engage in "off-label" promotion targeting women and children, they also engaged in kickbacks to healthcare professionals. It involved "meals, travel, entertainment -- to induce them to prescribe the meds we are seeing in this case and to benefit the pharmaceutical industry," he said.

GSK is also accused of underpaying rebates owed to government programs for various drugs paid for by Medicaid.

In a statement announcing the settlement, GlaxoSmithKline expressed regret, and said it's learned from mistakes that were made. The company also said it's changed its procedures for compliance, marketing and selling.