GlaxoSmithKline settles Paxil lawsuit: $40 million to health insurance providers

MINNEAPOLIS GlaxoSmithKline has agreed to pay $40 million to health plans that paid for the antidepressant Paxil for children and adolescents in a settlement in a United States District Court in Minneapolis.

The settlement, made Wednesday, ends a class-action lawsuit against the British drug maker by health plans alleging that GSK had failed to disclose negative information about the safety and efficacy of the drug when used by children and adolescents.

The Food and Drug Administration has not approved Paxil (paroxetine hydrochloride) for children, but doctors still prescribe it for them. Studies have shown that it leads to increased suicidal thoughts among adolescents. The drug had global sales of $974.3 million in 2007, according to GSK financial data. A number of companies sell generic versions.