New York Attorney General Eliot Spitzer reached a $14 million multi-state settlement with GlaxoSmithKline over allegations that it tried to delay generic competition to its antidepressant Paxil using frivolous lawsuits.
The suit claimed GSK delayed copycat rivals to Paxil (paroxetine hydrochloride) – also sold as Seroxat - by “fraudulently listing and prosecuting litigation” concerning the active ingredient in the product. GSK denied any wrongdoing or liability in reaching the deal.
The state settlement includes 49 states and secures recovery for purchasers that could not recover under the class settlement.
"GSK used the courts to hold onto a monopoly for a popular drug and the end result was that consumers - including Medicaid - paid more than they should have," said Jay Nixon, Missouri Attorney General, in a statement.
This is the second time that GSK has had to settle a case brought by Spitzer regarding Paxil. In 2004, GSK was charged with withholding negative information regarding possible increased risk of suicidal thoughts among patients taking the popular antidepressant. The drugmaker agreed to publicly disclose information from its clinical trials in order to settle the case.