Forty-one insurance companies filed a lawsuit against GlaxoSmithKline. The charges were placed against GSK's Puerto Rican drug manufacturing branch. According to Insurance Business.com, a federal Pennslyvania court judge found that the insurance companies purchasing GlaxoSmithKline's diabetes drug, Avandia, were overcharged for the medication.
Judge Sanchez stated this about the case, "Avandia, an insurer's overpayment for the drug due to the manufacturer's deceptive market practices is a concrete economic injury."
GSK pleaded guilty to the charges, and according to court documents, the company had been manufacturing defective drugs and overcharging insurance companies for them for years prior to this case.
In 2013, the forty-one insurance companies filed suit against GSK for manufacturing a defective drug. GSK attempted to cover-up their mistake, but the insurance companies took their case to the appeals court. GSK was found guilty in 2016.
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