And the Hits Just Keep Coming for Glaxo
GlaxoSmithKline, the makers of the popular antidepressant Paxil, recently lost a civil lawsuit in Philadelphia. The jury in the case awarded $2.5 million to Michelle David, who had filed the lawsuit on behalf of her son, Lyam Kilker, who had just turned four.
Michelle filed the suit and sought $1.2 million to aid in covering future medical costs and other damages caused by Paxil. Her son has heart defects that Michelle claimed were the direct result of Glaxo's refusal to properly warn the public about the proper risks in taking Paxil. The jury seemed to agree with a 10-2 vote. This is a direct match to an award that was handed down five years ago when Glaxo agreed to pay the state of New York $2.5 million as a means of taking care of any claims against them that GSK hid test data showing Paxil may increase the chances of young people committing suicide.
Michelle's lawyer was ecstatic with the verdict, calling it the first suit to get a jury to say the drug caused the injury. But business analysts on the side of Glaxo didn't share the same opinion; Navid Malik, an analyst at Matrix Corporate Capital in London, said, “I don’t think the link is proven, so there will likely be collective settlements which will keep costs low. If this was a threat to GSK, the first verdict might have been 100 times greater.”
While the family cannot seek any punitive damages as the jury did not find Glaxo's behavior outrageous, Glaxo disagrees with the verdict and will be appealing it. Considering just how much information has come out about Glaxo in the last year, it may be wise for the company to pay the settlement and walk away. Recent FDA restrictions placed on Avandia along with all of the other evidence mounting up against Glaxo and its practices might just be too overwhelming for a fast company recovery.
