Problems with Avandia continue to haunt GSK. Previously, GSK has settled thousands of claims over Avandia while claiming there is nothing wrong with the onetime diabetes wonder drug. And now confronted with allegations brought by the State of Utah the drug giant defrauded the state’s Medicaid program through allegedly false and misleading marketing of Avandia, GSK has elected to settle. As a result of a lawsuit filed in the Medicaid Fraud Control Unit of the Utah Attorney General’s Office, the state of Utah will receive an $8.5 million settlement from GlaxoSmithKline stemming from their diabetes drug, Avandia. The complaint alleged the drug giant defrauded the state’s Medicaid program through allegedly false and misleading marketing of Avandia. Although GSK marketed the diabetes drug as a “wonder drug” that offered “significant advance” in treatment, studies showed that Avandia actually increased the risk of heart attacks for certain users of the drug. According to Robert Steed, director of the Utah Medicaid Fraud Control Unit, “This settlement is a great outcome in a complex case.”
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