Goldshield Group
Goldshield Group
NHS £400m rip-off?
In 2002, The Serious Fraud Office (SFO) began an investigation 'into a suspected conspiracy to defraud the NHS in relation to prices charged by suppliers for prescribed penicillin based antibiotics and warfarin between 1st January 1996 and 31st December 2000'[1].
The six pharmaceutical companies being investigated were:
- Generics UK Ltd.
- Kent Pharmaceuticals Ltd.
- Regent-GM Laboratories Ltd.
- Goldshield Group Plc.
- Norton Healthcare Ltd - a subsidiary of Ivax Corporation
- Ranbaxy (UK) Ltd - a subsidiary of Ranbaxy Laboratories Ltd
The SFO later (27th April 2006) reported[2] that nine persons appeared in court on 'charges of conspiracy to defraud the National Health Service' along with 5 Companies (including Norton Healthcare) 'on conspiracy to defraud charges'. The 'persons' were Jonathan Raymond Close and Nicholas Mark Foster (both formerly of Norton Healthcare Limited) alongside Denis William O’Neill and John Stephen Clark (of Kent Pharmaceuticals Limited), Luma Auchi (formerly of Regent-GM Laboratories), Michael John Frederick Sparrow (formerly of Generics (UK) Limited), Anil Kumar Sharma (formerly of Ranbaxy (UK) Limited), Ajit Ramanlal Patel and Kirti Vinubhai Patel (of Goldshield Group Plc). On the 9th April 2006 (shortly before the companies appearance in court), Medical News Today reported [3] that The Department of Health and Norton Healthcare Ltd and Norton Pharmaceuticals Ltd had 'jointly announce settlement of the claims'. Norton did not admit any liability in relation to the charges but did pay compensation to the NHS for the amount of £13.5 million. In the report, Jim Gee (Director of Counter Fraud Services for the Department of Health) stated that "Norton is the third of the defendant companies to have recognised the strength of the claim made by the NHS..." The £13.5million was paid out to the NHS in England and Wales[4].
It appears that the case was due to go to trial in September 2008[5] in what The Guardian describes as 'the biggest prosecution for alleged fraud ever launched in the United Kingdom'[6]. However, in April 2008, it was announced that 'A drugs group has agreed a £2.8m settlement with the Scottish Government and health boards over the alleged price fixing'. Norton is reported to have agreed to the £2.8 million payment as a 'full and final settlement' and without admiting any liability[7]. The report also mentions that the Goldshield Group paid £750,000 after agreeing a similar deal in March 2008.
In June 2007, The BBC reported that Goldshield had agreed to pay a £4million settlement on a 'full and final basis and without admission of liability'.[8]. The details of how they then went on to agree to pay the £750,000 in March 2008 is not immediately clear.
References
- ↑ Serious Fraud Office Suspected fraud on the National Health Service Press release 10th April 2002. Accessed 4th April 2008
- ↑ Serious Fraud Office Fraud on the National Health Service. Appearance at Magistrates Court Accessed 4th April 2008
- ↑ Medical News Today Norton Settles NHS Claim For 'Price Fixing', UK 9th April 2006. Accessed 4th April 2008
- ↑ BBC News Drug group backs £2.8m settlement. 30th April 2008. Accessed 30th April 2008
- ↑ Livingstone, T. & Shipton, M. (2008) 'I made a mistake but it was an innocent mistake'. The Western Mail. 25th January 2008.
- ↑ Monbiot, G. (2008) 'This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party to the super-rich'. 5th February 2008
- ↑ BBC News Drug group backs £2.8m settlement. 30th April 2008. Accessed 30th April 2008
- ↑ BBC News 'Alleged drug cartel' settlement 22 June 2007. accessed 30th April 2008
