Drug Company Agrees to Settle Lawsuit


Pharmaceutical giant GlaxoSmithKline has agreed to settle a class action lawsuit that was filed over its antidepressant drug, Paxil. The lawsuit claimed that the drug manufacturer promoted the drug for use on children, and failed to disclose that there is evidence that the drug is not effective on children.

Glaxo was also accused of failing to disclose the dangers and side effects of taking the antidepressant. The settlement over the lawsuit will ensure restitution for insurers who paid benefits for use of the drug by children and teenagers. The settlement amount agreed by Glaxo is forty million dollars.

Although the drug has never actually been approved by the Food and Drugs Administration to treat depression in children it has been prescribed off label to treat the illness in those aged under eighteen. The drug company has been investigated by the government over its claims about the use of this drug on children and younger teenagers.

Over forty thousand health insurers got together to file the class action lawsuit against Glaxo. These were companies that had made payments for prescriptions of the antidepressant for those aged under eighteen.


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