Tuesday, November 08, 2011
SDNY Judge Skeptical of Corporate Integrity Agreements
As Citigroup prepares to settle allegations of its most recent securities fraud violations, the district judge tasked with evaluating the settlement has approached the SEC’s handling of such cases with skepticism. Judge Rakoff has questioned the effectiveness of Citigroup’s corporate integrity agreement, under which the company has agreed not engage in fraudulent activity in the future. Although many companies sign corporate integrity agreements, a significant portion get caught for similar activity shortly thereafter. The New York Times recently identified nineteen repeat offenders, all high-profile Wall Street firms. Despite the fact that many companies violate their integrity agreements--including financial giants like Citigroup, Goldman Sachs, Morgan Stanley, JP Morgan Chase, and Bank of America--the SEC told Judge Rakoff that it has not brought any contempt proceedings against violators in the last ten years. Several critics, including U.S. Senator Carl Levin, have questioned the ability of such unenforced agreements to serve as an effective deterrent of future fraud.
Read the entire article, “Promises Made, and Remade, by Firms in S.E.C. Fraud Cases"
Posted by eithurburn on 11/08 at 06:13 PM
Concerns Surrounding Anemia Drugs Grow
A new book has been published that reiterates many of the allegations of recent lawsuits surrounding the marketing of anemia drugs Aranesp, Procrit, and Epogen, which are all manufactured by Amgen. One of the drugs, Procrit, is marketed and sold by Johnson & Johnson. According to recent allegations and FDA findings, these drugs, which were increasingly prescribed to purportedly improve the quality of life of patients with serious diseases such as cancer and AIDS, may actually increase cancer growth rates and lead to significant heart problems. The FDA recently concluded that there was no dosage that was able to eliminate the risks posed by the drug and have counseled physicians to confine use only to patients who suffer from anemia, the drug’s original intended purpose.
Amgen has reached a settlement in principle in relation to these allegations and is expected to pay $780 million.
Read the entire article, “Medicare’s Blood Drugs"
Posted by eithurburn on 11/08 at 06:11 PM
Another Bullet-Proof Vest Manufacturer Settles
Point Blank Solutions Inc. has agreed to pay $1 million to resolve allegations that it sold defective body armor to government law enforcement agencies. Point Blank continued to manufacture bullet-proof vests with Zylon, even though they allegedly knew the material degraded quickly, causing it to lose its bullet-proof properties.
Point Blank is one of several corporations investigated by the Department of Justice. Several suits are still pending.
Read the entire article, “Bullet proof vest maker pays $1 million penalty for selling defective products"
Read our earlier post on Zylon-related litigation, “False Claims Act Case against Bulletproof Vest Manufacturer Proceeds"
Posted by eithurburn on 11/08 at 06:08 PM
Monday, November 07, 2011
Botox Maker Receives Civil Investigative Demand
According to the company’s recent regulatory filings, Allergan, the maker of Botox, received a Civil Investigative Demand in September from the Massachusetts Attorney General’s office. The civil investigative demand supposedly relates to its eye-care group.
Read the entire article, “Allergan Says Massachusetts AG Wants Documents on Group"
Posted by eithurburn on 11/07 at 06:07 PM
Friday, November 04, 2011
GSK to Pay $3 Billion
Glaxo Smith Kline has agreed to pay $3 billion to resolve multiple claims against it. Among the allegations resolved by the settlement are its development and marketing of Avandia, a diabetes drug that has been linked to heart risks, improper marketing of Paxil and Wellbutrin between 1997 and 2004, and abusive Medicaid billing practices.
In 2010, GSK paid $2.4 billion to resolve several unrelated cases, $750 million of which resulted from a suit brought by Getnick & Getnick LLP regarding quality control deficiencies at GSK’s manufacturing plant in Cidra, Puerto Rico.
Read the entire article, “Glaxo to Pay U.S. $3 Billion to Settle"
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Posted by eithurburn on 11/04 at 06:04 PM