GSK announces charges for legal matters
London, UK & Philadelphia, US .- GlaxoSmithKline plc (GSK) today announced that it will record a legal charge in the fourth quarter of 2008 of $400 million (£278 million) relating to an ongoing investigation initiated by the US Attorney’s Office in Colorado into the Group’s US marketing and promotional practices for several products for the period 1997 to 2004. This charge is in addition to legal charges for other matters to be taken in the fourth quarter.
This decision reflects the current status of the investigation, and is based upon the company’s most recent evaluation of the matter. GSK is co-operating fully with the investigation. The ultimate liability related to the investigation may vary from the amount provided as it is dependent upon the outcome of the investigatory process and potential litigation.
This charge was not included in the assumptions made by the company for provision of legal matters when determining its earnings guidance for 2008. Excluding the effect of this charge, the company’s performance remains in line with its previously announced guidance of a mid-single digit percentage decline in 2008 business performance EPS at constant exchange rates.
GSK now expects to incur a total legal charge in the fourth quarter of 2008 of £517 million (Q4 2007: £62 million), leading to a total legal charge for the full year of £611 million (FY 2007: £255 million).
GSK will announce its full year results for 2008 on 5 February 2009.
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