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U.S. Drug Firm Penalized $300 Million for Criminal Actions

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posted on Sep, 16 2010 @ 10:59 PM
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U.S. Drug Firm Penalized $300 Million for Criminal Actions


www.cbc.ca


A major U.S. drug company, Forest Pharmaceuticals, has agreed to plead guilty to three charges related to selling an unapproved drug, promoting an antidepressant to children and obstructing federal agents.


The company is facing fines and criminal penalties of over $300 million.


The charges date back more than 10 years when Forest was promoting its antidepressant, Celexa, for pediatric use when it was only approved for use in adults.


"These charges should serve as a warning
(visit the link for the full news article)




posted on Sep, 16 2010 @ 10:59 PM
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What is interesting is that I've had the news on all day, CNBC, Fox Business Network and have been reading Bloomberg and no mention of this, not one.

The FDA seems pretty pleased with themselves, a "this will show them" deal - these gents should be going to prison, not taking equity from shareholders and paying fines.

This is clearly criminal behavior and defined as such with a criminal obstruction charge, which is a felony.

You want to send these folks a message, send them to prison and make them do a perp walk on prime time TV

www.cbc.ca
(visit the link for the full news article)



posted on Sep, 16 2010 @ 11:04 PM
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reply to post by dolphinfan
 


Fining these Pharms does no good, they just up the price of needed medication to cover any fines, so it's the consumer that suffers.

What needs to happen is those responsible and the "directors" that should know what is happening, should be jailed..

Then they would stop this BS..

s&f



posted on Sep, 16 2010 @ 11:39 PM
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$300,000,000 ? Sounds like they are getting off easy.



posted on Sep, 17 2010 @ 12:04 AM
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$300 million? People like this should be in jail. This is just a smack on the hand. They will just continue to profit and destroy, like they have been doing. If I sold coc aine to a kid on the street, they would lock me up for a long time, but, no, these drug companies can advertise to and sell, drugs, just as powerful, or more to our children. And, they can still continue to stay in business, as long as they pay a fine. My god, our system is so screwed up sometimes.

Heck with these lowly drug people who drag the population down with poison and expensive bills.

Troy



posted on Sep, 17 2010 @ 02:18 AM
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reply to post by cybertroy
 


Its actually worse than that. Not only do they merely have to pay fines, when they pay the fines they either pay from a cash account, use debt or issue more shares. All of those things dilute the value of the shares already held, most of which are held by folks who own mutual funds. Hence via pension and other investment accounts, the same folks who are being harmed by the actions of this company are further harmed by the payment of the damages.

Additionally, the senior executives of the firm are in no way formally sanctioned. Their pay may be cut by their board, or the board may actually remove them, but that is certainly not a given.

In this model, there is pretty much no downside to actions of this type. There are constitutional issues about removing a CEO outside of normal corporate governance practices and frankly that is immaterial because simply put, these folks should be doing hard time and not in a country club jail with tennis courts.



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