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UPDATE 1-GlaxoSmithKline settles fraud case for $3 bln

Mon, 2nd Jul 2012 16:17

WASHINGTON, July 2 (Reuters) - GlaxoSmithKline Plc has agreed to plead guilty to criminal char

ges and pay $3 billion to settle the largest case of healthcare fraud in U.S. history, according to court filings and prosecutors.

The settlement includes $1 billion in criminal fines and $2 billion in civil fines in connection with the sale of the drug company's Paxil, Wellbutrin and Avandia products.

Deputy U.S. Attorney General James Cole said on Monday that the settlement 'is unprecedented in both size and scope.'

As part of the settlement, GlaxoSmithKline agreed to strict oversight of its sales force by the U.S. government to prevent the use of kickbacks or other prohibited practices.

(Reporting by David Ingram; Editing by Gerald E. McCormick) Keywords: GLAXO SETTLEMENT/

(David.Ingram@thomsonreuters.com)(+1 202 898 8351)

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