Author: Staff (Page 15 of 28)

      Glaxo and corporate malfeasance

      July 3, 2012 /

      In a stunning settlement, GlaxoSmithKline has agreed to a $3 billion fine.

      In the largest settlement involving a pharmaceutical company, the British drugmaker GlaxoSmithKline agreed to plead guilty to criminal charges and pay $3 billion in fines for promoting its best-selling antidepressants for unapproved uses and failing to report safety data about a top diabetes drug, federal prosecutors announced Monday. The agreement also includes civil penalties for improper marketing of a half-dozen other drugs.

      The fine against GlaxoSmithKline over Paxil, Wellbutrin, Avandia and the other drugs makes this year a record for money recovered by the federal government under its so-called whistle-blower law, according to a group that tracks such numbers.

      In May, Abbott Laboratories settled for $1.6 billion over its marketing of the antipsychotic drug Depakote. And an agreement with Johnson & Johnson that could result in a fine of as much as $2 billion is said to be imminent over its off-label promotion of another antipsychotic drug, Risperdal.

      No individuals have been charged in any of the cases. Even so, the Justice Department contends the prosecutions are well worth the effort — reaping more than $15 in recoveries for every $1 it spends, by one estimate.

      But critics argue that even large fines are not enough to deter drug companies from unlawful behavior. Only when prosecutors single out individual executives for punishment, they say, will practices begin to change.

      “What we’re learning is that money doesn’t deter corporate malfeasance,” said Eliot Spitzer, who, as New York’s attorney general, sued GlaxoSmithKline in 2004 over similar accusations involving Paxil. “The only thing that will work in my view is C.E.O.’s and officials being forced to resign and individual culpability being enforced.”

      We’ll see if these fines deter future behavior. I can’t imagine that a fine of this size won’t have an impact in the industry.

      That said, the laws on disclosure of risks surrounding drugs need to be enforced and people hiding results need to be held accountable.

      General Business

      Murdoch not betting on Romney

      July 1, 2012 /

      The business community is lining up behind Mitt Romney, but Rupert Murdoch isn’t too optimistic based on his recent tweets.

      “Met Romney last week. Tough O Chicago pros will be hard to beat unless he drops old friends from team and hires some real pros. Doubtful,” he wrote.

      He added: “US election is referendum on Obama, all else pretty minor.”

      This is just the latest in a series of anti-Romney tweets. Last week, the News Corp CEO wrote that Romney “Seems to play everything safe, make no news except burn off Hispanics.”

      You can follow Murdoch on Twitter here.

      General Business

      Another Euro deal

      June 29, 2012 /

      Stocks surged in the United States and around the world today as markets reacted to the latest news out of Europe. We’ve had so many deals and false starts, but it looks like serious progress might be at hand in Europe.

      By the end of a vital two-day summit here, European diplomacy had played out like soccer, with Spain and Italy — the two nations headed to the Euro 2012 finals — emerging victorious and the Germans returning home in shock.

      After a marathon 14 hours of talks, Berlin unexpectedly agreed to concessions clearing the way for a deal that could help both Madrid and Rome in their desperate efforts to stave off economic collapse.

      The agreement, while conditional on the creation of a regulatory body, addressed the core of the questions facing Europe: Who will cover the tab for its 2½-year-old debt crisis, and how?

      Under the terms of the deal, troubled euro-zone countries would have more options for aid, including using a pool of European rescue funds to directly recapitalize ailing banks. That, in turn, would spare governments the humiliation of having to ask for aid themselves to channel to domestic banks, sidestepping the kind of intrusive financial inspections imposed on Greece, Ireland and Portugal.

      The big change has to do with the decision to directly fund the troubled banks. Check out the whole article for the story, but it looks like Germany will cave here.

      Economy, Finance, General Business

      Senate protects sugar subsidies

      June 24, 2012 /

      Watch this video, and you’ll learn how sugar is one of the biggest health problems we face in this country.

      But, the new farm bill passed in the Senate leaves sugar subsidies in place.

      The Senate on Thursday completed a five-year, half-trillion-dollar farm bill that cuts farm subsidies and land conservation spending by about $2 billion a year but largely protects sugar growers and some 46 million food stamp beneficiaries.

      The 64-35 vote for passage defied political odds. Many inside and outside of Congress had predicted that legislation so expensive and so complicated would have little chance of advancing in an election year.

      Senate Republican leader Mitch McConnell called it “one of the finest moments in the Senate in recent times in terms of how you pass a bill.”

      Is there a better example of what’s wrong with our politics?

      Economy, General Business

      How Legit Is Your Vacation Club?

      June 13, 2012 /


      Image Courtesy of Flickr

      Vacation clubs are a strange thing. On the one hand, they have the potential to be very good ways to save some money on the kinds of vacations you like to take. On the other hand, they can also become nightmares if you picked one of the shady types of vacation club. It can be extremely hard to tell which kind of club membership you have before it’s too late. The following may help you figure it out while there’s still time to back out.
      Lots of Hoops to Jump Through

      As a general rule, the better a company is, the less hoops they make you jump through to use their services. A vacation club that makes you adhere to a million rules typically has fees set up to grow their profits at your expense. The more work you have to do for your vacation, the more ridiculous the entire idea becomes. Seriously, why should a vacation involve a bunch of work?

      Too Much Legalese

      Legalese is a nice way to tell you that a company essentially owns your soul. In many cases, legalese is simply a company trying to keep itself from getting sued over silly things it has no control over. However, when a vacation club posts more legal disclaimers than you’d expect to find on a plutonium supplier’s website, it makes you wonder what kinds of travel club complaints they may have faced in the past. Don’t just wonder — do your research.

      Who Owns the Company?

      If you can’t easily find out who owns the travel club, that’s a serious problem. Usually, the owners of any kind of company are clearly marked at the bottom of the website. Generally this is for intellectual property protection reasons, but it also marks the fact that a website is owned by a legitimate business. If the business isn’t legit, no markings make it harder to find the owners in case a lawsuit comes up.

      Where are the Owners Located?

      Sometimes off-shore companies are on the level, but often they aren’t. In most cases, you want to deal only with vacation clubs that are located in your home country. The exception to that is clubs that are located in the country where the vacations in question take place. If the club isn’t located somewhere that the owners could easily be found if necessary, this is a huge red flag.

      What are You Paying For?

      If you can’t easily say in one sentence what you’re paying for, you’ve been duped already. Often a scam company will lead you through a long spiel about what they offer, and make it sound so convincing and great that you’re tempted to sign up without even knowing what you’re getting yourself into. If they put on the pressure and want you to sign up immediately, walk away quickly.

      By following just a few common sense tips, you will be able to find a vacation club that will suit your needs.

      General Business

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