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Mark Brody's avatar

The Pfizergate scandal illustrates well Lord Acton's famous quip, "Power corrupts and absolute power corrupts absolutely." This harkens back to WCH's call for decentralization of authority regarding health. The decentralization theme might just as well be applied to all aspects of governance, as we can see from this example. Criminal as the actions of the protagonists are, it is just as much a crime to keep handing the criminals the authority to commit more similar crimes.

Mario A Leblanc's avatar

To seek justice, all the CEOs should be sued personally, otherwise they don't care.

Justice Department Announces Largest Health Care Fraud Settlement in Its History

Pfizer to Pay $2.3 Billion for Fraudulent Marketing September 2, 2009

¨WASHINGTON – American pharmaceutical giant Pfizer Inc. and its subsidiary Pharmacia & Upjohn Company Inc. (hereinafter together "Pfizer") have agreed to pay $2.3 billion, the largest health care fraud settlement in the history of the Department of Justice, to resolve criminal and civil liability arising from the illegal promotion of certain pharmaceutical products, the Justice Department announced today.

Pharmacia & Upjohn Company has agreed to plead guilty to a felony violation of the Food, Drug and Cosmetic Act for misbranding Bextra with the intent to defraud or mislead. Bextra is an anti-inflammatory drug that Pfizer pulled from the market in 2005. Under the provisions of the Food, Drug and Cosmetic Act, a company must specify the intended uses of a product in its new drug application to FDA. Once approved, the drug may not be marketed or promoted for so-called "off-label" uses – i.e., any use not specified in an application and approved by FDA. Pfizer promoted the sale of Bextra for several uses and dosages that the FDA specifically declined to approve due to safety concerns. The company will pay a criminal fine of $1.195 billion, the largest criminal fine ever imposed in the United States for any matter. Pharmacia & Upjohn will also forfeit $105 million, for a total criminal resolution of $1.3 billion... ¨

https://www.justice.gov/opa/pr/justice-department-announces-largest-health-care-fraud-settlement-its-history

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