British pharmaceuticals company GlaxoSmithKline (GSK) was hit with a multi-million pound lawsuit yesterday after allegedly misleading doctors about the safety of an anti- depressant drug for children.

The lawsuit, filed by the New York State Attorney General, accused the company of concealing important information about the safety and efficacy of an anti-depressant drug.

It claimed the company, which has a plant in Barnard Castle, County Durham, withheld the results of medical studies about the drug, Paxil.

Paxil has not been cleared by US authorities for use in treating children with depression, but doctors can prescribe it at their discretion.

It is not permitted for use in treating children in the UK, where Prozac is the only drug cleared for such use by UK authorities.

The lawsuit, filed in New York State Supreme Court, in Manhattan, is seeking the disgorgement of all profits obtained by GSK as a result of the conduct alleged in the suit.

GlaxoSmithKline had no immediate response to the lawsuit.

The news hit Glaxo shares, which closed almost three per cent lower on the London market yesterday.

* A US government study published yesterday suggests that anti-depressants are the best way to treat children with depression.

Prozac, was found to be more effective in helping youngsters overcome depression than counselling, researchers found.

The study was sponsored by the National Institute of Mental Health and, unlike many other trials, did not have any backing from drugs companies.