Attorney General Stumbo Recovers $326,000 In Paxil Settlement

FRANKFORT, KY (March 28, 2006) – Attorney General Greg Stumbo today announced a $326,000 settlement with SmithKline Beecham Corporation concerning the drug Paxil, which is used to treat depression, anxiety, and obsessive-compulsive disorders.

The settlement resolves claims that SmithKline Beecham Corporation d/b/a GlaxoSmithKline (“GSK”) fraudulently delayed low cost generic competition with Paxil. The settlement recovers money for the state Medicaid program.

“My office will continue the fight to recover funds from drug manufacturers who illegally profit at the expense of our taxpayers,” Stumbo stated.

Kentucky joins the attorneys general in 49 states in announcing the $14 million settlement. The settlement arose from a class action settlement in Nichols v. SmithKline Beecham Corp., No. 00-CV-6222 (E.D. Pa.). State Medicaid programs will receive payment based on their pro rata share of Paxil purchases. Kentucky’s expenditures entitle it to $326,000 in settlement proceeds.