A Pennsylvania federal judge ruled today that 41 insurance companies represented by Getnick & Getnick may proceed with their Civil RICO (Racketeer Influenced and Corrupt Organizations Act) action against GlaxoSmithKline. Judge Juan Sanchez rejected GSK’s argument that the insurers, who represent 70% of the health insurance market in the US, suffered no economic injury when they paid billions of dollars for allegedly adulterated drugs manufactured at GSK’s now defunct Cidra, Puerto Rico facility.   The RICO action tracks the successful resolution in 2010 of a False Claims Act qui tam whistleblower case brought by G&G that resulted in a $600 million civil settlement, a $150 million criminal fine, and a criminal felony plea by the GSK unit responsible for operating the Cidra facility. G&G is co-counsel in the RICO case with Lowey Dannenberg Cohen & Hart PLC, Rawlings & Associates PPLC, and Prof. G. Robert Blakey.

Relevant Links: November 9, 2016 Memorandum Decision; November 9, 2016 Law360 Article; Plaintiffs’ Brief in Opposition to Defendant’s Motion to Dismiss.