GSK to record $400M 4th-qtr legal charge
UK drug major GlaxoSmithKline says it will record a legal charge in the fourth quarter of 2008 of $400.0 million relating to an ongoing investigation initiated by the US Attorney's Office in Colorado.
The cost for litigation, which concerns the London-based firm's US marketing and promotional practices for several products between 1997 to 2004, is larger than expected and sent GSK's shares down 3.8% to GBP12.15 on the day of the news, January 30.
The firm made the decision based on the current status of the investigation, and on the company's most recent evaluation of the matter. GSK is cooperating fully with the investigation. The ultimate liability may vary from the amount provided. This charge was not included in the assumptions made by the company in its earnings guidance for 2008.
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