Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Against Drug-Maker GlaxoSmithKline.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--Sept. 19, 2002

Goodkind Labaton Rudoff & Sucharow LLP (GLRS), today filed a class action lawsuit against GlaxoSmithKline, (NYSE:GSK) charging the drug manufacturer is illegally maintaining a monopoly over the antibiotic Augmentin.

GLRS is representing New York State's largest union, New York State United Teachers which represents some 480,000 classroom teachers, other school employees and retirees; academic and professional faculty at the state's community colleges, State University of New York; and other education and health officials, and its largest local union, the 130,000-member United Federation of Teachers Welfare Fund in New York City, in the class action suit.

NYSUT is affiliated with the American Federation of Teachers, AFL-CIO.

Barbara Hart, a partner at GLRS, in describing some of GlaxoSmithKline's conduct pointed out that, "GlaxoSmithKline has gone so far as to try to assert patent protection over their version of the drug touting the fact that they put it in a bottle with a cap and a desiccant. That's been the state of the art since 1974, certainly not a patentable new utility. Even shoe manufacturers know a lid and a desiccant keep shoes fresh."

New York State United Teachers Executive Vice President Alan B. Lubin, chairman of the New York State AFL-CIO Prescription Drug Task Force, said, "The suit is part of NYSUT's three-pronged approach to attacking the high cost of prescription drugs in New York State."

"In addition to legal action, NYSUT is lobbying lawmakers to pass legislation to put a cap on prescription drug costs," Lubin said. "We're also pushing the state for new regulations to limit drug advertising, which encourages some people to seek out prescription drugs that they don't really need."

The suit, filed in the Southern District, U.S. District Court in New York, alleges that GlaxoSmithKline has engaged in unjust practices to suppress competition from generic alternatives to Augmentin, which could be offered to consumers at lower cost. The suit seeks monetary damages and injunctive relief under federal and state antitrust and related laws.

"Parents of children who need this medication should have it at the lowest cost possible," Lubin said.

He went on to add that "the shamefully high cost of prescription drugs in our state is forcing New Yorkers into an intolerable position," Lubin said. "Some parents are being forced to decide between buying clothes to keep their children warm and buying prescription drugs to keep their children healthy. There are senior citizens who are choosing between paying for heat or paying for their medication. This is a tragedy. Working families are paying the price for the pharmaceutical companies' greed."

The AFL-CIO Prescription Drug Task Force is sponsoring a series of meetings across the state to help bring attention to the prescription drug crisis. The first public meeting, co-sponsored by NYSUT, was held in Albany in late June, where Ms. Hart was an invited speaker. Future meetings are planned for Rochester, Buffalo and New York City.

GLRS and various AFL-CIO affiliates are also pursuing claims where brand-name manufacturers are allegedly colluding.

Ms. Hart and the GLRS Antitrust Litigation team recently won settlements in the In Re Warfarin Sodium Antitrust Litigation against DuPont Pharmaceuticals. The class was awarded a $44.5 million settlement.

In the In re: Lorazepam and Clorazepate Antitrust Litigation, against Mylan Laboratories, Inc., Mylan Pharmaceuticals, Inc. (together "Mylan"), Cambrex Corporation, Profarmaco S.r.l. and Gyma Laboratories of America, Inc. In these cases two settlement funds totaling $10.1 and $25.3 million were created.

In addition, GLRS was co-lead counsel in related antitrust litigation on behalf of consumers brought in conjunction with the Federal Trade Commission and the attorneys general of thirty-two states.

This litigation was also settled at the same time, with Mylan paying $100 million which will be used to reimburse consumers and state agencies in all fifty states and the District of Columbia for a portion of any overcharge they may have incurred when purchasing either or both drugs. The total amount of the settlements including lawyers' fees totaled $147 million.

In approving the Mylan settlements, Judge Hogan complimented the efforts of GLRS recognizing them as "...experienced antitrust litigators" and commenting positively about their efforts in a "...lengthy and complex antitrust case, involving multiple jurisdictions, extensive investigation and discovery, coordination, and negotiations."

Goodkind Labaton Rudoff & Sucharow LLP (GLRS) is situated in New York City with a branch office in Fort Lauderdale, Florida.

Our practice is unique in that we are actively engaged in prosecuting representative actions -principally securities, antitrust and consumer class actions and Qui Tam actions - as well as maintaining a diversified general practice specifically organized to service the needs of the business community.

For further information please contact Barbara Hart at 212-907-0862 or [e-mail] or visit www.glrslaw.com.