Glaxo Settles Paxil Lawsuit for $40 Million

Glaxo Smith-Kline has settled a lawsuit concerning Paxil and the manner in which it was marketed as safe and effective to minors. The class action lawsuit was settled for $40 million and the money will be used to reimburse health plans that paid for children’s Paxil use. While Glaxo Smith-Kline denies any liability in settling the lawsuit in which the company was charged with promoting the drug to children while at the same time withholding dangerous side effects, the settlement is a victory for consumer advocates who’ve been alleging that pharmaceutical companies regularly overpromote their drugs to consumers. Hopefully, this will curb pharmaceutical companies from illegally marketing their drugs for purposes which the drugs have not been approved. The drug companies market their drugs in this fashion because in their cost-benefit analysis it is worth it. If they continue to get penalized with lawsuits and federal fines they may re-think their cost-benefit analysis.
In the end, this is a good thing for consumers and children who don’t deserve to be victimized by big pharma trying to make huge profits.