October 13, 2009 Legal Judgement: GSK is ordered to pay the family of Lyam Kilker $2.5 million when a jury decides that Paxil is responsible for his birth defects.

"Oct. 13 (Bloomberg) -- GlaxoSmithKline Plc must pay $2.5 million over claims that its Paxil antidepressant caused birth defects, a Pennsylvania jury concluded in the first of 600 such cases to come to trial.

Jurors in state court in Philadelphia deliberated about seven hours over two days before finding Glaxo failed to properly warn doctors and pregnant users of Paxil's risk. The panel awarded $2.5 million in compensatory damages to the family of Lyam Kilker. The 3-year-old was born with heart defects his mother blamed on the drug…

It's the first time a jury has considered claims that Glaxo, the U.K.'s largest drugmaker, knew Paxil caused birth defects and hid the risk to increase profits." "The company disagrees with the verdict and will appeal, Kevin Colgan, a spokesman, said in an e-mailed statement.

"While we sympathize with Lyam Kilker and his family, the scientific evidence does not establish that exposure to Paxil during pregnancy caused his condition," Colgan said."

Dec 14, 2009Article: Glaxo Said to Have Paid $1 Billion in Paxil Suits estimates damages paid by the company to date related to suicides and birth defects.

"The London-based company hasn't disclosed the settlement total in company filings. It has made public some accords. Glaxo's provision for legal and other non-tax disputes as of the end of 2008 was 1.9 billion pounds ($3.09 billion), according to its latest annual report. This included all legal matters, not just Paxil…

About 450 suicide-related Paxil cases were settled. Only about a dozen haven't been, the [Glaxo spokespeople] said. The $1 billion total doesn't include more than 600 claims that Paxil caused birth defects.

Based on the outcome [in the Lyam Kilker lawsuit], an analyst estimated the company may potentially face additional verdicts in birth-defect cases waiting to be tried in Pennsylvania."