GlaxoSmithKline are rarely out of the news. Regular readers will know that I'm covering the wrongful death lawsuit in Chicago, Dolin Vs GSK. Now, it appears the whole squalid 'Chinagate' scandal has, once again, reared its ugly head as Peter Humphrey, who was incarcerated in a Chinese prison, along with his wife, has filed suit against GSK claiming federal racketeering and conspiracy claims under RICO, as well as state law claims for fraud, intentional infliction of emotional distress, negligent infliction of emotional distress, and civil conspiracy.
Glaxo wouldn't be Glaxo if they admitted to any wrong-doing so, in spectacular fashion, they are disputing the complaint, citing that Humphrey should go back to China to arbitrate these claims.
The suit, filed in the United States District Court of Pennsylvania, argues that the case does not have to be filed in China because...
- Defendants are part of the GSK Group, which holds itself out as an integrated “global healthcare company.”
- Directors of GlaxoSmithKline plc manage the risks of the Group at a group level, rather than at an individual business unit level.
- GSK’s General Counsel, Dan Troy is based in the United States.
GSK’s General Counsel, Dan Troy, is based in the United States and manages the companies 400 lawyers based in Pennsylvania, New Jersey, North Carolina, Belgium and the UK. As discussed further below, Troy “played an active role” in forming GSK’s response to the whistleblower’s revelations of corruption in China.
For those who don't know, Troy is the former Chief Counsel for the FDA. During his time at the FDA he ordered that all decisions to take action against false prescription advertising go through his office -- after which the enforcement actions mysteriously dropped by two-thirds. He also got to work revising the agency's regulations to allow drugmakers to promote drugs for uses not yet supported by clinical research.
Quite a revolving door and Troy is a subject I will be covering soon on this blog.
Meantime, Humphrey's lawsuit intends to highlight, once again, how GSK attempted to bribe doctors around the world by various means in order to increase the sale of their drugs. This, despite settling a multi-billion dollar settlement agreement with the Department of Justice (DOJ) in 2012.
GSK’s China-based bribery and illegal promotional activities extended to at least June 2013.
More coming soon.
Bob Fiddaman.
More on Peter Humphrey and the Chinagate scandal here.
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