The Supreme Court ruled Monday that GlaxoSmithKline must face lawsuits brought by three union health plans that said they overpaid for the diabetes pill Avandia.
The lawsuits claims GSK concealed the cardiovascular risks of Avandia to boost sales
The three union health funds are pursuing a claim under the RICO act, claiming GSK was engaged in an illegal conspiracy.
The suits, filed by three union health funds between 2007 and 2010, claim the plans paid more for prescriptions than they would if they knew of the risks. Avandia was hit with an FDA label warning in 2007, and with new restrictions in 2010, as reports surfaced of the cardiovascular risks.
The FDA lifted all its safety measures late last year, but the drug had fallen from $3 billion in annual sales to less than $200 million. The FDA subsequently took a fresh look at Avandia data and voted in 2013 to remove many of the restrictions it had placed on the drugs, saying the data did not show an increased cardioviscular risk over standard diabetes treatments.