Tag Archive for ‘Lawsuits’
At least 15 drug and medical-device companies have paid $6.5 billion since 2008 to settle accusations of marketing fraud or kickbacks. However, none of the more than 75 doctors named as participants were sanctioned, despite allegations of fraud or of conduct that put patients at risk, a review by ProPublica found.
Columnist Gael O’Brien says the case of Dimitrios Biller, a former attorney for Toyota, “is a sad tale without vindication.” Biller had accused the car maker of withholding and destroying product safety information. Last week an arbitrator ruled in favor of Toyota and said that Biller had “violated ethical, statutory, and contractual prohibitions.”
Independent directors have strong incentives to quit a company’s board precisely when they are most needed, creating an economically significant “dark side” affecting future performance, according to an academic study. The study found that in the wake of surprise outside director departures firms have worse stock and accounting performance as well as a greater likelihood of earnings restatements and shareholder lawsuits.