Glaxo Bites the Dust.
GlaxoSmithKline, a UK company, has agreed to pay $3.4 billion in the largest tax settlement in IRS history.
They have been playing around with "transfer prices" a simple scheme in which drug manufacturers can set internal prices in a way in which their affiliates in some countries, like the US, show very low profits.
So Glaxo has ripped off US tax payers twice. First when they charge us twice as much as they charge their own citizens in the UK, second when they pretend they have an artifically low profit in the US. Glaxo has also been very active in the campaign against reimportation of drugs with big ads, trying to tell US consumers drugs from Canada may kill you.
Perhaps no one is surprised there was a shareholder revolt in the UK about the Glaxo CEO's pay and that he told them "he was no Mother Teresa."
YOU can read a lot more about that in my book, The Whistleblower.
And, as always when a big one bites the dust, we sing:
ANOTHER ONE BITES THE DUST!