Tag Archive for ‘Department of Justice’
Big Pharma has written more than $30 billion in checks in the last 10 years to resolve government allegations of illegal marketing, according to consumer watchdog group Public Citizen. Yet those sums are essentially petty cash for the drug giants, says Public Citizen, amounting to less than 5 percent of the net profits raked in by the 11 largest global pharmaceuticals firms over a similar period.
For more than two years, Goldman Sachs’ reputation has been under fire for its alleged role in the financial crisis. On August 9, 2012, the U.S. Justice Department (DOJ) announced it won’t prosecute the firm. Goldman Sachs’ spokesman said, “We are pleased that this matter is behind us.”
Corporate compliance officers want the U.S. Department of Justice to provide data “that identifies how often an effective ethics and compliance program yields a direct return in enforcement decisions,” according to three leading professional organizations. They said the information is needed to help educate boards and management on the value of ethics and compliance programs.
Drug companies say the millions of dollars they pay physicians for speaking and consulting justly compensates them for the laudable work of educating their colleagues. But ProPublic reports that a series of lawsuits brought by former employees of those companies allege the money often was used for illegal purposes — financially rewarding doctors for prescribing their brand-name medications.
The study found that news of an alleged fraud resulted in an average 16.7 percent abnormal stock price decline in the two days surrounding the announcement. Companies engaged in fraud also often experienced bankruptcy, delisting from a stock exchange, or asset sale, and in nine out of ten cases the SEC named the CEO and/or CFO for alleged involvement, the study found.
An audit of agency open government plans released by a consortium of transparency groups found that while some agencies outlined concrete steps for improvement, others lack specifics about how or when the agency will be more open.
Efforts to combat transnational bribery and corruption could be enhanced by the creation of a top level U.S. government task force with a mandate to develop diplomatic and other incentives for adoption of laws similar to the U.S. Foreign Corrupt Practices Act (FCPA), especially in developing countries, according to a new report published by The Conference Board.
With its disclosure, Avon becomes the latest in a growing list of major Western companies dealing with alleged violations of the U.S. Foreign Corrupt Practices Act (FCPA). Avon is the world’s largest direct seller of beauty products, marketing in more than 100 countries through 5.4 million independent sales representatives.
The maker of Mercedes cars and trucks is the latest company dealing with fallout from violations of the U.S. Foreign Corrupt Practices Act. Transnational bribery and corruption are intensifying ethics and compliance concerns for companies doing business on a global basis as prosecutors pursue a record number of cases and penalties for offenses escalate dramatically.
“The U.S. government – and not just the Justice Department, but the U.S. government more broadly – is going to focus on international corruption in a more comprehensive and even more rigorous way than it has in the past,” said Mark Mendelsohn, the Justice Department’s lead criminal prosecutor for violations of the Foreign Corrupt Practices Act.