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Grant & Eisenhofer Represents Key
Whistleblower in Justice Dept.'s $1.04 Billion
Civil Settlement with GlaxoSmithKline
PR Newswire
BOSTON and WASHINGTON, July 2, 2012
- G&E partner Reuben Guttman led team on behalf of a former GlaxoSmithKline
Therapeutic Sales Manager who alleged misrepresentation in promotion of
company's asthma/COPD drug
; firm's third major whistleblower recovery
in 2012, following Abbott Labs' $1.6 billion settlement and banks' $25 billion
payment over 'robo-signing' mortgage fraud
July 2, 2012
/PRNewswire/ -- Leading whistleblower
law firm
Grant & Eisenhofer
has represented one of several key
whistleblowers behind a
$1.04 billion
settlement announced today between
drug maker
and the U.S. Department of Justice stemming
from alleged marketing abuses of various GSK medications. Grant &
Eisenhofer's client,
Lois Graydon
, is a nursing professional and former GSK
Therapeutic Sales Manager.
The U.S. Attorney's office in
led the investigation into promotional
tactics behind a total of nine GSK drugs. An accompanying criminal component
of the case is expected to substantially increase the sum of the recovery.
Grant & Eisenhofer partner
Reuben Guttman
and senior counsel
are counsel to Lois Graydon, a registered nurse. She is one of the
"relators" who alleged that GSK made false and misleading statements about
Advair's safety and efficacy, thus enabling false or fraudulent claims to
Medicare, Medicaid, and other reimbursement programs.
Advair's share of the recovery – more than
$700 million
– amounts to over half
of the total civil settlement of
$1.04 billion
"The False Claims Act plays an important role in health industry compliance
enforcement; health care is an issue that touches everyone and oversight,
diligence and transparency are critical," said Mr. Guttman, one of the country's
leading whistleblower attorneys.
"It is important that the medical community pays attention to this settlement
and others and asks critical questions about the scientific support for the use of
prescription drugs," he added.
"In this election year, the safety of pharmaceuticals and their cost to the health
care system should be front and center," Mr. Guttman said.
He added, "Whistleblowers play an important role in compliance enforcement
of our laws. We were proud to have represented one of the whistleblowers on
this important case under the False Claims Act."
The GSK settlement is the latest in a series of high-profile outcomes for Mr.
Guttman on behalf of individual whistleblowers. The firm represented plaintiff
Lynn Szymoniak
, profiled on
60 Minutes
as a homeowner facing foreclosure
and later whistleblower on "robo-signing" fraud by large mortgage providers
Citigroup, Bank of America, JP Morgan Chase
, and
The group of banks concluded a settlement with the Justice Department and
state Attorneys General this past March for
$25 billion
Grant & Eisenhofer also represented an
Abbott Laboratories
sales manager
who alleged the company illegally marketed its powerful anti-seizure
medication Depakote, while making kickbacks to physicians to prescribe it.
Among other allegations, Abbott was accused of promoting Depakote for use in
nursing homes to sedate patients with dementia and Alzheimer's, as well as for
hard-to-control children. The company was also charged with making illegal
payments to medical practitioners to prescribe it. This past May, Abbott agreed
to pay
$1.6 billion
to settle the claims, one of the largest payments ever for off-
label marketing of a single drug. Mr. Guttman and Ms. Buschner's client was
lead whistleblower when the Justice Department intervened on her behalf.
Mr. Guttman and Ms. Buschner currently represent several relators in an
ongoing government case against defense contractor
Lockheed Martin
regarding alleged environmental noncompliance and mishandling of hazardous
waste at one of its plants. The
Natural Resources Defense Council
joined the government's case. Additionally, Mr. Guttman and Ms. Buschner are
counsel to one of the relators in a case against
(now owned by
over alleged off-label marketing of Rapamune, its immunosuppressant post-
organ transplant drug.
Note: Grant & Eisenhofer P.A. represents institutional investors and
shareholders internationally in securities class actions, corporate governance
actions and derivative litigation. The firm has recovered more than
$13 billion
for shareholders in the last five years and has consistently been cited by
RiskMetrics for securing among the highest average investor recovery in
securities class actions. Grant & Eisenhofer has been named one of the
country's top plaintiffs' law firms by
The National Law Journal
for the past six
years. For more about Grant & Eisenhofer, visit or
From: Allan Ripp +1-212-262-7477
James Bourne +1-212-262-7470
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