GlaxoSmithKline to pay $63.8 million Paxil settlement

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GlaxoSmithKline said it will pay $63.8 million to settle a lawsuit involving the promotion of its antidepressant Paxil. Glaxo denied the lawsuit’s claims that it promoted Paxil for use in children and adolescents while withholding negative information about the drug’s safety but decided on a settlement to stave off further litigation costs. Though considered safe for adults, the FDA has issued warnings against use of Paxil in children after studies found the drug increased suicidal tendencies while having questionable effects on depression. Under the settlement, plaintiffs in the class action lawsuit could get full refunds for their purchases of Paxil or Paxil CR if they have documentation of their purchases. Those without purchase records could be entitled to a $15 refund. A judge will conduct a hearing on March 9 to decide whether the settlement is fair and whether the plaintiff’s attorneys are entitled to the $16 million settlement fee they are requesting.
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