GlaxoSmithKline $3 Billion Settlement (2012)

In 2012, GlaxoSmithKline (GSK) agreed to pay $3 billion in what was then the largest healthcare fraud settlement in U.S. history. At Barrett Johnston, we highlight this case because it shows the incredible scale of misconduct that whistleblowers and federal investigators can uncover when they work together.

The case centered on allegations that GSK engaged in illegal promotion of prescription drugs, failed to report certain safety data, and misrepresented product information. Most notably, the company was accused of marketing antidepressants like Paxil and Wellbutrin for unapproved uses, including treatment for children and adolescents. This practice, known as off-label marketing, is dangerous because it encourages doctors to prescribe medications without sufficient scientific evidence for those populations.

In addition to off-label promotion, GSK was accused of offering kickbacks to physicians in the form of lavish trips, perks, and speaking fees to encourage more prescriptions of its products. The Department of Justice pursued both criminal and civil charges, and whistleblowers played a key role in bringing evidence forward.

The $3 billion settlement included $1 billion in criminal fines and $2 billion in civil settlements under the False Claims Act. Importantly, whistleblowers shared in the recovery, receiving hundreds of millions in awards for their role.

At Barrett Johnston, we see the GSK case as a reminder that fraud at this level can have life-or-death consequences for patients. It also underscores how whistleblowers are essential to uncovering practices hidden inside major corporations. Without individuals willing to step forward, much of this misconduct might never have come to light.