Update:  The settlement was approved on July 19, 2007. 
Click here to read the order

There is an Approved Settlement with GlaxoSmithKline (“GSK”), one of the Defendants in a class action lawsuit in the U.S. District Court for the District of Massachusetts. The name of the lawsuit is In re: Pharmaceutical Average Wholesale Price Litigation, Docket No. 01-CV-12257-PBS, MDL No. 1456.

The lawsuit claims that certain drug companies reported false and inflated average wholesale prices (“AWP”) for certain types of outpatient drugs. The reported AWPs are often used to set prescription drug prices that are paid by Medicare, consumers and insurers. The lawsuit asks the Court to award money damages to some people who paid or made co-payments for the drug.

GSK has agreed to pay $70 million to settle these and other related claims. A $4.5 million payment to certain State Attorneys General, as well as attorneys' fees and the costs of administering the Proposed Settlement, will be deducted from the Settlement Fund before distributions to Class Members.

The remaining fund will be distributed to consumers and insurer Class Members (including Third-Party Payors) who submit a valid claim.