2 July 2012 Last updated at 11:52 ET

GlaxoSmithKline to pay $3bn in US drug fraud scandal

Drug giant GlaxoSmithKline (GSK) will pay $3bn (£1.9bn) in the largest health care fraud settlement in US history.

The drug giant will plead guilty to promoting two drugs for unapproved uses and to failing to report safety data about a diabetes drug to the Food and Drug Administration (FDA).

The settlement will cover criminal fines as well as civil settlements with the federal and state governments.

The case concerns the drugs Paxil, Wellbutrin and Avandia.

Deputy US Attorney General James Cole said at a news conference in Washington the settlement was "unprecedented in both size and scope".

As part of the settlement, GlaxoSmithKline agreed to strict oversight of its sales force by the US government to prevent the use of kickbacks or other prohibited practices.

GSK said in a statement it would pay the fines through existing cash resources.

Chief Executive Andrew Witty said the company's US unit has changed procedures for compliance, marketing and selling.

"When necessary, we have removed employees who have engaged in misconduct," Mr Witty said.

BBC News - GlaxoSmithKline to pay $3bn in US drug fraud scandal