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Attorney General Marty Jackley

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S. D. Attorney General Marty Jackley and 37 State Attorneys General Reach $40.75 Million Settlement


South Dakota Attorney General Marty Jackley and 37 State Attorneys General Reach $40.75 Million Settlement with Pharmaceutical Companies
PIERRE, S.D –    Attorney General Marty Jackley announced today that South Dakota, along with 37 other state Attorneys General, reached a $40.75 million settlement with GlaxoSmithkline, LLC (GSK) and SB Pharmco Puerto Rico, Inc. (SB Pharmco) arising from alleged substandard manufacturing processes. South Dakota’s share is $545,767.00.
In a complaint filed today along with the settlement agreement it is alleged that GSK and SB Pharmco engaged in unfair and deceptive practices when they manufactured and distributed certain lots of Kytril (a sterile drug used to prevent nausea and vomiting caused by cancer chemotherapy and radiation therapy), Bactroban (an antibiotic ointment used to treat skin infections), Paxil CR (the controlled release formulation of the popular antidepressant drug, Paxil), and Avandamet (a combination Type II diabetes drug) that were adulterated because the manufacturing processes used to produce these lots were substandard. 
“Today’s settlement will contribute to the safe and effective use of prescription drugs in South Dakota,” said Jackley. “Pharmaceutical companies must be held accountable for misleading marketing that places consumers at risk.”
GSK and SB Pharmco are no longer manufacturing drugs at their Cidra facility, which has been closed since 2009. As a result of the settlement, GSK and SB Pharmco are enjoined from making false, misleading or deceptive claims regarding the manufacturing of all drugs formerly manufactured at the Cidra facility regardless of where these drugs are now produced. In addition, the companies must not misrepresent those drugs’ characteristics, or cause likelihood of confusion or of misunderstanding about the way in which they are manufactured.
Consumers should note that there is no current cause for concern regarding the drugs covered by this agreement because all adulterated batches have been recalled and/or the products’ expiration date is past. If consumers do have concerns they should contact their health care provider.
The South Dakota Attorney General’s Consumer Protection Division participated in the settlement negotiations.
FOR IMMEDIATE RELEASE :  Thursday, June 23, 2011
CONTACT: Sara Rabern, (605) 773-3215