The Third Circuit Gives the Green Light to RICO Plaintiffs Seeking to Recover Payments for Prescription Drugs

This week, the Third Circuit altered the legal landscape for civil Racketeer Influenced and Corrupt Organizations Act (RICO) claims against pharmaceutical companies. The ruling in In re Avandia Marketing, Sales Practices & Product Liability Litigation allows the plaintiffs’ RICO claims to proceed; in their suit, the plaintiffs allege that GlaxoSmithKline LLC (GSK) engaged in a marketing campaign to minimize the side effects of Avandia, a drug prescribed to treat Type II diabetes, and thereby increase sales at a higher price than it otherwise would have been sold. 

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