In June, drug manufacturer GlaxoSmithKline (GSK) reached a nearly $41 million settlement with a coalition of 37 states and the District of Columbia, led by Oregon and Illinois, over allegations of improper manufacturing practices. The suit, initiated by the Oregon Department of Justice and the state of Illinois, raised concerns about production of Paxil, Bactroban, Kytril and Avandament at a plant in Cidra, Puerto Rico, between the years 2001 and 2004. Allegedly, the company violated state consumer laws by putting drugs into the market which may have been contaminated by bacteria, mislabeled, or made too weak or too strong. When consumers are harmed by a dangerous drug, an experienced drug attorney may be able to help.
This settlement follows a federal lawsuit that was settled last fall. In that suit, Cheryl Eckard, a former GSK employee who blew the whistle on questionable company practices, including conditions at the Cidra plant, was awarded a $96 million payout from the federal government’s share of the $600 million awarded to both the federal government and state governments. As reported by NPR, the $600 million serves as compensation for the purchase of affected medicines by state and federal health programs. Business Ethics reported the federal government’s share totaled $436.4 million, with states participating in the agreement being slated to receive up to $163.6 million. Additionally, as part of the $750 million settlement, GSK agreed its Puerto Rico subsidiary, SB Pharmco Puerto Rico Inc., would plead guilty to a crime and pay a $150 million fine, which includes the forfeiture of assets totaling approximately $10 million.
According to The Oregonian, Oregon will receive $1.9 million from the settlement. California Healthline reports that California will receive $3.3 million from the lawsuit, the largest share of any state involved. Illinois will reportedly receive $2.4 million, Tennessee will receive $1.34 million, New Jersey $1 million, Missouri $948,385 and Connecticut $756,000. When dividing up the settlement between 37 states and the District of Columbia factors such as population were taken into account.
Problems with Puerto Rico drug manufacturing plants are not limited to just GSK’s Cidra plant. Caribbean Business reported in June 2011 that 17 pharmaceutical companies issued 29 drug recalls for products manufactured in Puerto Rico between 2004 and 2010, including eight recalled drug actions last year alone. According to Caribbean Business, more than half of all U.S. Food and Drug Administration visits to Puerto Rico plants between 2005 and 2010 resulted in citations. When a drug manufacturer’s negligence harms consumers, victims of the defective drug can contact a qualified drug lawyer to take the first step toward defending their rights.