GlaxoSmithKline (GSK) will pay $3bn, which includes a $1bn criminal fine and forfeiture and $2bn to resolve civil claims, in fine and will plead guilty for promoting antidepressants Paxil and Wellbutrin for unapproved uses.
The largest health care fraud settlement in US history involves criminal and civil violations involving ten drugs.
The company will also plead guilty for not reporting the safety problems associated with diabetes drug Avandia for seven years to the government.
Avandia was restricted in the US and banned in Europe after it was found to sharply increase the risks of heart attacks and congestive heart failure in 2007.
The company agreed to resolve civil liability for promoting Paxil, Wellbutrin, asthma drug Advair and two lesser-known drugs for unapproved uses.
The company also resolved allegations that it took advantage of the government-funded Medicaid program for some drugs, and that it bribed doctors to prescribe drugs such as Flovent for asthma and Valtrex for genital herpes.
GlaxoSmithKline CEO Sir Andrew Witty expressed regret and said the company has learned from the mistakes that were made.
The company has also agreed to be watched by the government for five years to ensure the compliance with marketing and other rules.
Greg Thorpe and Blair Hamrick, former Glaxo sales representatives, have brought the case against GSK in January 2003 and the federal government joined in the case in January 2011.
