we made a case against glaxo on paxil in '04. so i'm skeptical.is the word of the day on wall street. everybody there is a multiple offender. dr. wolfe, do you buy that a clawback of a bonus will be sufficient or do we need to begin to send some executives to jail? handcuffs may be the only remedy that actually changes behavior. >> i think that the clawback is certainly different. i don't trust that it actually will happen because the evidence that these companies are obeying the terms of the corporate integrity agreement are being withheld. the companies have convinced the government that the only way we're going to cooperate is if all of the results are reports that go to you to show whether or not we're complying. they're all kept secret. i don't trust the process. the companies are making too much money to stop doing it. as long as no one goes to jail, one of the things we've also asked for the corporate integrity agreement for is oxycontin. everyone knows it is widely used overpromoted, dangerous killing narcotic. three of the executives ther

the pop in april was when glaxo made its first offer. u.s.hares of the buyer glaxo- ithkline moved fractionally higher. g.s.k. gets human genome's lupus treatment and experimental medicines for diabetes and heart disease. the other deal involves generic drug maker par pharmaceutical. private equity firm t.g.p. has offered $50 per share for a total value of $1.9 billion. par can look for a better price for the next six weeks. after the close, the stock continued rallying over the $50 dollar per share buyout offer. all five of the most actively traded exchange traded funds were lower today, the russell 2,000 e.t.f. saw the biggest losses, down 0.4%. and that's tonight's market focus. >> tom: retail sales continue slowing, job growth has been tepid and earnings season has not been all that spectacular, leading to tonight's word on the street: growth. david peltier is a portfolio manager with thestreet.com. like all investors looking for growth. dave, in this environment is there consistent reliable growth to be found? >> it's tough but it is out

glaxo agreed to plead guilty to two counts of misbranding drugs. from 1998 to 2003, glaxo pushed doctors to prescribe the anti- depressant paxil for children even though its own studies showed the drug was not effective in patients younger than 18. around the same time, the company illegally marketed the anti-depressant wellbutrin even hiring a p.r. firm to help sell the drug for off-label uses including weight loss. glaxosmithkline also pled guilty to one count charging it withheld safety information about the diabetes drug avandia. in addition to pleading guilty, glaxo will pay $1 billion in criminal penalties. the company will also pay $2 billion to settle civil charges it improperly promoted eight drugs. prosecutors say glaxosmithkline bribed physicians to sell drugs. >> using every imaginable form of high-priced entertainment from hawaiian vacations to doctors millsions of dollars to go on speaking tours to a european pheasant hunt to madonna concerts and this is just to name a few. these allegations and others are detailed in the papers filed

glaxo says it now discloses such relationships. dr.e is no longer involved in such arrangements. and "hln" says in a statement that the network, quote, requires any relevant disclosures be made to our viewers. >>> it must have seemed like a sweet deal for clarence page, $20,000 and a trip to paris for a three-minute speech. "the chicago tribune" columnist was speaking to an eiranian committee on the list of truft organizations. "the tribune" says page violated its policy by not obtaining permission in advance and has ordered him to return the speaking fee. page told me after taking his 40-year career into account, my editors decided it could be slewed slew views as an aberrational incident and we could resolve this with a letter of reprimand. we can move on with me promising to run any future speech invitation past my superiors. >>> attention, i'm going to give bill o'reilly some credit, that is before i get to the part about him being thin-skinned. he talked about his prediction of the supreme court which striked down obama's health c

prosecutors say glaxo smithkline put profits ahead of safety when it came to ten popular drugs. a company video shows it was all about the money. >> reporter: no. these aren't entertainers. ♪ y'all ready for this >> reporter: they're senior executives with glaxo smithkline, at a pep rally for their sales team. the goal to rev up sales is what prosecutors say was a culture of greed, where patients' safety took a backseat to profits. >> you do the math. there are people in this room who are going to make an ungodly sum of money. >> reporter: the company apparently spared no expense to entice stock. >> gsk sales force brought decisions to describe gsk products. >> reporter: bribes to include trips to hawaii. tickets to madonna concerts. the government maintains that gsk there was no medical evidence they would help. allegations for promoting paxil for depression in patients under 18. even though the fda has never approved it for kids. this was done despite the fact the company had evidence the drug could spark suicidal thoughts in young people. marking wellbutrin to lose weight, de

drug maker glaxo smith klein made the history books but not for a good reason. it agreed to pay big bucks to settle criminal and civil claims over some of it medications. we will explain why. >>> also ahead, a customer in england loses his cool in a cell phone store and it was caught on camera. what he got so upset about coming up. >> like me in the sprint store. here's what's going on this morning. if you need maryland's most powerful doppler radar get us on the app. look to local views by texting 46988 and a lot more good morning maryland coming your way after this. ahhh, now that's a clean mouth. i just wish it wouldn't fade away so fast. let me show you something. [ dr. rahmany ] as soon as you leave here... plaque quickly starts to grow back. but now there's a way to keep the clean longer. introducing new crest pro-health clinical rinse. it's a clinical breakthrough that actually keeps your teeth 91% clean of plaque at 2 months after a dental visit. plus, it gives you these key benefits. new crest pro-health clinical rinse. crest. life opens up when you do.

glaxo smith kline has agreed today to pay a multi billion dollar fine, the largest ever in a health care fraud case. here's nbc's justice correspondent pete williams. >> ladies and gentlemen, please welcome -- >> reporter: at the launch of asthma drug advair prosecutors say global drug giant glaxo smith kline pushed the sales force to push hard even for uses not federally approved. >> who wants to be a millionaire? >> reporter: today the company admitted its sales force bribed doctors to prescribe its drugs by offering such incentives as hawaiian vacations and tickets to madonna concerts. all part, the government says, of a range of misbehavior that resulted today in the largest fine ever paid by a drug company, $3 billion. >> this historic action is a clear warning to any company that chooses to break the law. >> reporter: here is some of what the company admitted doing -- promoting the use of its antidepressant paxil for children even though studies failed to show it worked for them, failing to warn that the diabetes drug could cause heart attacks and claiming unapproved uses for anoth

. >> glaxo smithkline, maybe some people have heard of them. they make well known prescription drugs. but now they are facing serious charges for ill landlordly promoting them. >> yeah, this is a warning to many american was use and trust some of the key blockbuster and popular drugs that they use that the information they are getting isn't always legit. the government looked into this case for seven years and now glaxo smithkline forking over $3 million in criminal and civil penalties. what happened was there are three drugs parley under fire. one is paxil. it was branded for kids but the fda never approved it for children under 18 years old. and then you have wellbutrin. glaxos can was suggesting it could be used to treat weight loss. never approved if that. then you have avandia. key studies and the data never went to the fda. you have the $3 billion fine now. >>> let's switch gears a little bit and stalking about something maybe perhaps a little bit on the lighter side. summer great for us but apparently it is bad for the bosses especially

to impose austerity measures well speaking of coercion and bribery that's in the next headline max glaxo smith kline fined three billion dollars after bribing doctors to increase drug sales sales reps in the u.s. encouraged to miss our antidepressants paxil and well but trend and asthma treatment advair the company encouraged sales reps in the u.s. to miss cell three drugs to doctors and lavished hospitality and kickbacks on those who greed to write extra prescriptions including trips to resorts and commuter to make a in california so this could be another reason why the americans don't care about the live or scandal is that they're so drug addled by these you know these big pharmaceutical companies pushing doctors to prescribe these medications over prescribe them but also to prescribe them for things that they don't even treat right and the penalty would be to pay a fine and the some of the fine if you place it on deposit at the fed you make money on a positive interest rate arbitrage. in other words you get paid to commit fraud here's a drug company they're committing fraud they're ov

glaxo came unsolicited with an offer. they shared a number of drugs so it appeared difficult for another potential buyer to come in. hg was exploring other alternatives, trying to stiff-arm glaxo for a bit. but they got that deal done. $14.25 a share, plus cash. >> that plus par pharma. >> it's crazy out there. >> just put a little bit -- not even asking for a silver lining. how about is zinc lining? >> it's pure madness out there in m&a land. >> you're just relentless. sheesh. >> bring on the sangria. that's what i say. >> we'll see what kind of day today is when trading gets started. a lot more "squawk on the street" in just a moment. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes

and some of the glaxo executives may have to forfeit bonuses.ut a consumer group says until the penalties are more meaningful and the heads of the companies responsible for this go to jail, they question whether this will continue. and we see that in the history of all of these big drug companies that have done this in the past. carol? >> you hear about a $3 billion fine. and initially you say, wow, there's a huge fine. but when compared to the profits these companies make, maybe it's not such a big fine. >> and that's why that consumer group says, you know, when these penalties really have to be more meaningful. that maybe you have to give more than just a slap on the wrist. maybe some of the heads of the companies need to go to jail for some of these activities. and they say until that happens, you're going to see this repeated over and over. i mean, besides glaxo having the biggest penalty there, $3 billion, pfizer had the second biggest at $2.3 billion, which is pretty close. but still, even after pfizer had to pay that $2.3 billion, here is

. >> glaxo smithkline has agreed pay $3 billion.tice department accused drug maker of marketing some drugs as treatment for weretion for which they not approved. says theyy spokesman happened and have mistakes.om its >> the navy said eight rare malfunction caused that jets crashed in virginia beach. the lastejected at ground.0 feet above the , 27n people were injured apartments were destroyed. >> it has been a rough weekend all over the area. the richmond area also got severe weather. a tornado touched down in county north of richmond. power was knocked out and the cleanup is underway. there are worries about more storms and the central part of the state. >> time we get a break? >> i think today is it, unfortunately. starting tomorrow, the humidity is back. the week, upper 90's again. we have more thunderstorms coming. let's get you started. from the nation's capital, it is beautiful. there is no threat of activity tonight. temperatures will drop in the overnight hours. upper 60's, near 70 in the suburbs. not much of a breeze. in th

drug maker glaxo smith kline has agreed to pay three-billion ollars to claims ovee some of its l - medicationsice ddpartment had accused the company of marketing ome oo its drugg as treatments for conditions they weren't approoed for. the district attorney says the company also bribed doctoos in order to get them to prescribe their medicatiins. "gsk sales force ribed physicians tt prescribe gsk products using every entertainmentt froo hawaiiaa vacations, to paying doctors speaking tours, to a eeropean pheasant hunt, to tickets for madonna concerts." 3 this case marks the llrgest frauddsetttement in u-s history. the company's c-e-o says it regrets what happened and has learned from its mistakes. a new airliie is offerrig plights out of bwi airport. airport. low-cost carrier spirit airlines announced today hat it will offer nonstop service from bwi to fort auderdale and dallas.the flights from trip to fort lauderdale and 88 dollars rouud-trip to dallas. connect to 29 destinations... innluding centralland south america, mexico and the caribbean. 3 "iq: as a carrier thats growing.... oq: thee a ve

there is glaxo smith klein paying $3 billion for illegally marketing its drugs. justice department says that it promoted several drugs, among them, paxil, to treat children, though the fda never approved the drug for anyone under 18 years of age. >> in marketing these drugs that are incorporated into civil settlement, they prescribed products using every form of high-priced entertainment from hawaiian vacations to paying doctors millions of dollars to go on speaking tours to a european phesesant hunt to madonna concerts. >> the commerce department reports consumer spending was unchanged in may. americans cut spending on cars and other goods. wages remain unchanged and income up a bit because investment income rose. and there are economists say this is disappointing. a study finds we care more about what -- where we shop than the items we buy there. and this shows 62% of us searched for store-center deals and only 14% searched for brand name products. discounts online nearly half of all u.s. consumers will use online coupons and codes during 2012. and this will be

drug aker glaxo smith kline has agreed to pay three-billion dollars to settle criminal and ivill claimsome of its medications..... the largest fraud settlement in u-s istory. history.the justice depprtment had accused the company of marketing some of its drugs ass treatments for conditions they weren't approveddfor. the district attorney says the comppny also bribed dootors in order to get them to prescribe their medications. "gsk sales force bribed physicians to prescribe gsk products sing every imaginable form of high-priced entertainment. from hawaiian vacations, to paying doctors millions of dollars toogo on pheasant unt, to tickets for madonna concerts." 3 the company's c-e-o said thhy regree what happened and have learned from their mistakes. crews continue to battle wildfires across the wwst.... but days after being evacuated from their homes .... mmny residents are gettinn their first glimpse of the damage. this is what one fammly founn..in colorado springs.... their belongings reduced to a pile of ash. they first learned their home was destroyed when they saw this picture on th

glaxo said it had learned from its mistakes. in the achievement, the chief said, "they cannot and will not be ignored." for some pharmaceutical companies, aggressively promoting a drug can make the difference between a mediocre sale and a blockbuster. this disgrace mr. as a warning that overenthusiastic marketing comes -- this disgrace may serve as a warning. >> the candidate who came second refused to concede. andres manuel lopez obrador is six points behind the presumed president-elect, enrique pena nieto. from mexico city, our correspondent, will grant, reports. >> down but not out. even with almost all the votes counted and behind by almost 6%, andres manuel lopez obrador is not prepared to concede the election just yet. the electoral process was unequal and dirty, he told reporters, and he refused to rule out the eventual challenge to the entire boat. >> [speaking foreign language] >> i cannot accept any results until i have complete certainty that the citizens' vote was respected and the elections were not falsified. >> me

glaxo-smith-kline ceo andrew witty expressed regret and said they learned from mistakes that were madepublicans are now calling the healthcare mandate a tax. all with one notable exception. the party's presidential candidate. the fox all-stars weigh in up next. pass, corporate card, verizon 4g lte phone. the global ready one ? yeah, but you won't need... ♪ hajimemashite. hajimemashite. hajimemashite. you guys like football ? thank you so much. i'm stoked. you stoked ? totally. ... and he says, "under the mattress." souse le matelas. ( laughter ) why's the new guy sending me emails from paris ? paris, france ? verizon's 4g lte devices are global-ready. plus, global data for just $25. only from verizon. ♪ ♪ >>> believes that what we put in place in massachusetts was a penalty. and he disagrees with the court's ruling that the mandate was a tax. but again -- >> so he agrees with the president, but he agrees with the president that it is not an -- he believes you shouldn't call the tax penalty a tax. you should call it a penalty or a fee or a fine? >> that's correct. >> john: it is confusi

glaxo smithkline has been penalized for using paxil to patients under 18 when it was approved for adults only. it also pushed wellbutrin for weight loss. the company did not warn people about the heart risk with avandia. >>> facebook is welcoming a group of high school students at the facebook academy. not only did they call it a neighbor. but now, they get to call it a fun place to work and learn. they will get to eat in the facebook cafeteria. >>> attorneys are filing massive lawsuits against people who download and share private films without paying. the problem is, innocent people are getting swept up in the dragnet. >> it usually starts with a letter from your internet provider saying the account with your name has been flagged for sharing copyrighted material. the file-sharing is cutting deeply into profits. for some receiving these letters, not only is it shocking and scary, but untrue. they are films most people would never admit to watching, let alone shopping. but the internet has porn in millions of homes every day. but 78-year-old bobbi jean thomas, isn't one of them. she was

glaxo smithkline has pled guilty to failing to report data to the food and drug administration. in addition, they have been found guilty of paying kickbacks to doctors. after being held for almost one month today, former officials from the international criminal court are being released in libya. they had been accused of spying on the son of the deposed former libyan leader. this comes as the bbc find firsthand evidence of torture and illegal detention. it is from there that we have received this report. >> some things in the new libya have a depressingly familiar feel. tribal elders have gathered to mourn the death of a man who has been tortured, not by his henchman, but by a rival tribe. >> looked, it says he was beaten. his hands and feet were tied before he died. in this -- >> in this conservative society, some people want revenge. tribal allegiances can be more powerful than loyalties to the state, and more than 100 people have been killed in recent fighting. negotiators say that it will not undermine stability. >> there will be one government, one nation. one people. >> li

it underscores the administration's commitment. >> for its part, glaxo said it learned from the mistakes. the company says and taken actions in all levels of the company and announced setting aside the $3 billion to cover the expected settlement and see how the stock has bounced back since then. we have reported prescription drugs are a particularly difficult area in the fight against health care fraud and learn more about what the feds are trying to do "health care hustle" tomorrow afternoon 2:30 and then 7:00 eastern because everyone's going to be up at 7:00 a.m. on the fourth of july. >> i will be. >>> now the big deal in the space. bristol-myers buying am ylin. there they are. down 7 cents for bristol and up 2.50 for amylin pharma. seema? >> big deal. they're buying amylin roughly $7.1 million. astrozeneca is chipping in to co-develop the drug pipeline with bristol. bristol-myers and astra zeneca aggressively looking for ways to build out the drug pipelines as they face the loss of blockbuster sales. brit toll's best selling plavis with $7 billion in sales in 2011 just went off paten

glaxo smithkline is set to pay out $3 billion of the largest health care fraud in u.s. history.mitted they encourage the use of anxiety drugs for kids although it was not approved for anyone above the age of 18. they also approved another drug for it fighting depression. >> 34 years ago the world's first test-tube baby was born in britain. since then five people have been born with in vitro fertilization. the procedures result in about 350,000 births, three tenths of 1 percent of all births are around the world. it is a fireworks show that is truly out of this world. >> yesterday the sun belt shopping major solar flare. a flare produced waves of a flare produced waves of ionization ,,,,,,,,,,,,,,,, huge flames burned several homes in san francisco overnight. >> police move in on a tent city. those stories and more in your morning minute. >> and iv

the justice department announced today that glaxo admitted to promoting the anti-depressants paxil and wellbutrin for unapproved uses. it also failed to disclose important safety information about avandia, a diabetes drug. we get more from katie thomas, who's covering the story for the "new york times." katie, what's the $3 billion fine for? it's been alled off-label marketing. what is that? >> well, what it is is it's considered illegal promoting of the drugs for types of uses that were not approved by the food and drug administration. so in the example of paxil, it was being marketed to children, people under 18. another drug was being marketed for sexual dysfunction and weight loss instead of depression. and then avandia is a slightly different allegation. that said the company was not accurately reporting the heart risks of the drug. >> gary: there were other issues that glaxosmithkline decided to resolve in the eyes of the law. kickbacks to doctors and other issues as well. >> right, yes. the allegation was that they were paying doctors, you know, to go to conferences and meetings

. >>> glaxo smith klein will pay $3 billion in foins for misrepresenting how drugs can be used. it's the largest health care fraud settlement in the united states history. the justice department says they promoted several drugs for uses the fda infer approved. an example gsk market paxil as treatment for depression in children but the fda says children under 18 shouldn't take it. prosecutors say they mismarketed other drugs. >> one of the things that struck me one of the drugs they were cited for is actually dangerous and there's a warning on the label and the company knew about it years before they told the food and drug administration. >> the $3 billion penalty will divide up. 2 billion will settle civil suits with massachusetts and colorado. >>> health news this morning. another reason to grab that morning cup of joe a study shows caffeine lowers the person's chance of developing some forms of cancer including basal cell carcinoma and it's not just coffee, tea cola and chocolate may help reduce the risk. doctors say that you should not use this as an excuse to drink too much