Glaxo Settles Suits With Hundreds 'Harmed' by Diabetes Drug

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Settlements with nearly 700 people who say they suffered heart attacks, strokes and other medical problems from taking the diabetes drug Avandia were reached by GlaxoSmithKline, a lawyer involved in the cases told Reuters.

Glaxo agreed to pay about $60 million to settle the suits filed by three attorneys, according to Bloomberg, though the settlement amount wasn't officially disclosed.

Sol Weiss, of Philadelphia law firm AnapolSchwartz, said he had settled with the British-based drugmaker on behalf of 189 people.

"There are 500 or so others that have been confirmed settled," Weiss told Reuters.

He added that most of his clients had suffered heart attacks, while others developed congestive heart failure or a stroke, and a "fair number" of people died.

Some investors fear the pharmaceutical company could face even higher liabilities.

Morgan Stanley analysts predicted that Glaxo's stock may be facing a $6 billion liability risk from Avandia before a Philadelphia hearing on 5,000 of 13,000 consolidated cases.

Avandia is no longer one of Glaxo's main products, after sales slumped following a 2007 controversy over the drug's heart risks.

In February, two U.S. senators slammed Avandia in a published report. This July, a Food and Drug Administration advisory panel will consider more restrictions on the drug.