Louisiana Attorney General, Buddy Caldwell has sued British pharmaceutical giant GlaxoSmithKline. He has claimed that the drug maker hid the harmful side effects of the diabetes drug Avandia.

The Attorney General has filed civil action lawsuit against the pharmaceutical giant for wrongfully and illegally marketing, pricing, promoting and selling its diabetes drug Avandia.

He has claimed that Louisiana's Medicaid program had paid more than $36 million for fraudulently induced Avandia reimbursements. The law suit has been filed to seek financial penalties and repayment from GlaxoSmithKline.

Restrictions on the use of Avandia have been issued by the Food and Drug Administration because it may be linked to heart attack.

Avandia was once one of GlaxoSmithKline’s top-selling products but its popularity dropped since 2007 when its heart risks were first publicized. Regulators in Europe have totally withdrawn the drug from the market. Thousands of patients have sued GlaxoSmithKline claiming that the drug caused heart attacks and other health problems.

Bernadette King, a Spokeswoman of GlaxoSmithKline, said, “GlaxoSmithKline stands behind the safety and efficacy of Avandia when used appropriately and according to its label”.