GlaxoSmithKline Agrees To Settle Paxil Claims For $14 million

GlaxoSmithKline (GSK) has reached an agreement with Eliot Spitzer, New York Attorney General to settle claims that it deceptively tried to delay competitors from releasing the generic versions of its star anti-depressant drug Paxil.

GSK was allegedly involved in a shady enterprise to keep the generic producers of Paxil in a bind of using frivolous patent-infringement lawsuits, thus managing to keep the cost of the drug in the high range. However, even after reaching the agreement, GSK denied the allegations, "We made the decision that settling was appropriate to avoid the expense and distraction of protracted litigation," a company spokeswoman said. But said Jay Nixon, Missouri Attorney General said, "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." The settlement of $14 million will go towards covering Paxil purchases by Medicaid, the state and federally funded medical programme for low-income patients.