New Mexico reaches nearly $19 million deal with diabetes drug manufacturer

SANTA FE, N.M. – New Mexico Attorney General Gary King says the state has reached a multimillion-dollar settlement with a manufacturer over alleged misrepresentations regarding a diabetes drug.

King announced Monday that New Mexico should net close to $19 million from the deal.

Prosecutors alleged that GlaxoSmithKline downplayed or misrepresented the risk of cardiovascular disease associated with the use of Avandia.

King says the settlement returns about $15 million related to consumer claims and about $3.8 million to offset Medicaid expenditures on the drug.