[HN Gopher] Pfizer Penalties Since 2000: $10B
       ___________________________________________________________________
        
       Pfizer Penalties Since 2000: $10B
        
       Author : bigtex
       Score  : 275 points
       Date   : 2022-12-21 13:41 UTC (9 hours ago)
        
 (HTM) web link (violationtracker.goodjobsfirst.org)
 (TXT) w3m dump (violationtracker.goodjobsfirst.org)
        
       | kodyo wrote:
        
       | wutheringh wrote:
        
       | salawat wrote:
       | Lets see some individual links shall we?
       | 
       | Fen-Phen: caused cardiovascular/lung dmg. 3.75B
       | 
       | https://violationtracker.goodjobsfirst.org/violation-tracker...
       | 
       | Civil and criminal penalties: 2.3B
       | 
       | >American pharmaceutical giant Pfizer Inc. and its subsidiary
       | Pharmacia & Upjohn Company Inc. agreed to pay $2.3 billion to
       | resolve criminal and civil liability arising from the illegal
       | promotion of certain pharmaceutical products. Pfizer was required
       | to pay a criminal fine of $1.195 billion and Pharmacia & Upjohn
       | was required to forfeit $105 million, for a total criminal
       | resolution of $1.3 billion. The other $1 billion represented a
       | civil False Claims Act penalty.
       | 
       | https://violationtracker.goodjobsfirst.org/violation-tracker...
       | 
       | Rezulin liver damage. 750 mm
       | 
       | >In January 2004 Pfizer announced that it had taken a $975
       | million charge to cover legal costs, including 35,000 personal
       | injury lawsuits alleging that the diabetes drug Rezulin, which
       | had been sold by its subsidiary Warner-Lambert, caused liver
       | damage. The company did not announce the cost of the Rezulin
       | settements, but it was reported that the amount was $750 million:
       | 
       | Celebrex/Bextra 745 mm
       | 
       | >Primary Offense: drug or medical equipment safety violation
       | Secondary Offense: product safety violation Violation
       | Description: In October 2008 Pfizer said it was taking a charge
       | of $894 million to cover litigation costs relating to its anti-
       | inflammatory drugs Bextra and Celebrex. Of the total, $745
       | million was to cover product liability suits relating to the two
       | drugs.
       | 
       | Chantix: suicidal/depressive behavior 288m
       | 
       | https://violationtracker.goodjobsfirst.org/violation-tracker...
       | 
       | Honestly, without even looking at PACER, the fact I'm seeing
       | these plus consumer protection + workplace safety + kickbacks and
       | bribes has me seriously wondering why we don't crack down harder
       | on companies that see the occasional criminal/civil case/willful
       | non-compliance charge as the cost of doing business.
       | 
       | I'm almost afraid to look through the legal briefs, because I'm
       | sure either A) it'll destroy what little faith I've managed to
       | hold onto in humanity, or B)it'll just make my drive to go to law
       | school to become a civic pain in the ass that much worse.
        
       | coldtea wrote:
       | AKA "cost of doing business"
        
       | willcipriano wrote:
        
         | colpabar wrote:
         | All the experts are baffled!
        
       | ranting-moth wrote:
       | I couldn't see any summary for total prison time for individuals.
       | Does anyone know if that's because there hasn't been a any or is
       | is just missing?
       | 
       | I somehow feel with a $10B (which include bribes/kickbacks) there
       | ought to have been some.
        
       | gorbachev wrote:
       | For the High Score search for financial offenses:
       | 
       | https://violationtracker.goodjobsfirst.org/summary?offense_g...
       | 
       | Bank of America in a league of its own.
        
         | Jensson wrote:
         | The interesting thing is that every big bank is doing these
         | offenses. There is nowhere to go if you want a well behaved
         | bank, so regulation is the only way to get there.
        
           | weberer wrote:
           | I don't see my credit union on that list. Or any credit
           | union, for that matter.
        
         | Semaphor wrote:
         | I wonder if there's an international list somewhere. As a
         | German, I find it unacceptable that your country name bank is
         | supposedly more criminal than ours.
        
           | mrep wrote:
           | Haha, Deutsche bank is in there [0]! Rookie numbers though,
           | only 18 billion in fines.
           | 
           | [0]: https://violationtracker.goodjobsfirst.org/parent/deutsc
           | he-b...
        
             | Semaphor wrote:
             | That's what I'm saying. These are only US fines, they
             | surely did some crimes elsewhere without bribing the right
             | people or hiding it.
        
         | TrickyRick wrote:
         | To the surprise of absolutely nobody, the whole list is banks.
        
           | Wronnay wrote:
           | The list is about financial-related offences - so there are
           | only financial companies on the list.
           | 
           | E.g. here is a list about environment-related offences: https
           | ://violationtracker.goodjobsfirst.org/offense_group/env...
        
       | dncornholio wrote:
       | Without context, it can either be 'Pfizer is bad' or 'laws are
       | too strict'. I can't make an educated guess.
        
         | monsecchris wrote:
         | Pretty good rundown of one of the largest pharma fines:
         | https://www.reuters.com/investigates/special-report/johnsona...
         | 
         | For extra bonus points I think they did miss the part where J&J
         | specifically targeted minorities in their advertising for these
         | products that they knew caused cancer.
        
       | johndhi wrote:
       | I actually used to work for them as a lawyer, indirectly. My view
       | is likely a bit skewed in the other direction, but to me this is
       | mostly evidence of how expensive and impossible it is to do
       | business in healthcare in the United States.
       | 
       | How are the laws and regs so unclear that a huge corporation of
       | smart people can't avoid big fines? Part of it is a question of
       | Pfizer's investment in compliance - which I assure you is massive
       | - but also it's a lack of clarity and shifting goal posts.
       | 
       | False claims act litigation, for example, is responsible for the
       | second largest settlement listed on this site (phen fen is #1), a
       | notorious and utterly incomprehensible regime where all of the
       | big money settlements relate to aggressive fringe theories
       | asserted by DOJ.
        
         | dec0dedab0de wrote:
         | _How are the laws and regs so unclear that a huge corporation
         | of smart people can 't avoid big fines?_
         | 
         | Without having any knowledge of said people and laws, I would
         | say that some of those smart people are making decisions to
         | help their personal bottom line while putting the company at
         | risk. Anyone working at a large company sees this all the time.
        
         | JacobThreeThree wrote:
         | Pfizer gets plenty of fines outside the United States too.
        
         | qwerty456127 wrote:
         | > How are the laws and regs so unclear that a huge corporation
         | of smart people can't avoid big fines
         | 
         | Perhaps they don't really care to? Apparently paying penalties
         | is just a part of the business model, net profits/savings made
         | thanks to the violations still exceeding net fines.
         | 
         | I'm not sure about Pfizer but I feel almost sure this is the
         | way Google and other big tech corporations providing "free"
         | services work paying huge fines for privacy violations every
         | now and then. Google will still spies on you and records
         | everything it can about you no matter how much do you tweak
         | your settings and how hard does the EU try to protect your
         | privacy rights, doesn't it?
        
           | shadowgovt wrote:
           | I can't speak to medical specifically, but in one of the
           | spaces I used to work the thinking was "The law is ambiguous
           | because it's reactive; we're so far out on the bleeding edge
           | that nobody _actually knows_ what 's legal until someone
           | tries it and someone else makes a case of it. So pushing the
           | envelope is a net positive for society because we end up
           | blazing a trail of bright-line precedent rulings that other
           | companies can follow. You can tell the pioneers because
           | they're the ones with the arrows in their backs."
           | 
           | A bit self-serving but there's some meat on the bones of that
           | logic; the real meaning of the law _is_ path-dependent and
           | determined by the rulings, not the words on the paper.
        
             | thatguy0900 wrote:
             | In fairness there's Noone you can call up in the government
             | to ask for certain if something is legal or not past a
             | certain point. Only a judge can decide that, and they don't
             | do hypothetical cases.
        
           | forgetfreeman wrote:
           | It's also worth noting that the parent claim of unclear
           | compliance guidelines is less of a statement of fact and more
           | a commentary on your average pharma industry lawyer. There
           | are more suites of standardized compliance applications than
           | you could shake a stick at, that's not at issue. The problems
           | usually start with a department of contract lawyers who can't
           | be assed to skill up on industry specifics. Throw in a CFO
           | with little or no experience managing CRO's and you've got
           | the perfect recipe to get dumped on by the OIG.
        
         | mulletbum wrote:
         | I didn't go through all of the False Claims litigation, but the
         | penalties were related to pricing, nothing to do with their
         | science.
        
         | avgDev wrote:
         | Pfizer product issues:
         | 
         |  _During the mid-1980s, watchdog organizations such as the
         | Public Citizen Health Research Group charged that Pfizer's
         | widely prescribed arthritis drug Feldene created a high risk of
         | gastrointestinal bleeding among the elderly, but the federal
         | government, despite reports of scores of fatalities, declined
         | to put restrictions on the medication. A June 1986 article in
         | The Progressive about Feldene was headlined DEATH BY
         | PRESCRIPTION.
         | 
         | The Food and Drug Administration expressed greater concern
         | about reports of dozens of fatalities linked to heart valves
         | made by Pfizer's Shiley division. In 1986, as the death toll
         | reached 125, Pfizer ended production of all models of the
         | valves. Yet by that point they were implanted in tens of
         | thousands of people, who worried that the devices could
         | fracture and fail at any moment.
         | 
         | In 1991 an FDA task force charged that Shiley had withheld
         | information about safety problems from regulators in order to
         | get initial approval for its valves and that the company
         | continued to keep the FDA in the dark. A November 7, 1991
         | investigation in the Wall Street Journal asserted that Shiley
         | had been deliberately falsifying manufacturing records relating
         | to valve fractures.
         | 
         | Faced with this growing scandal, Pfizer announced that it would
         | spend up to $205 million to settle the tens of thousands of
         | valve lawsuits that had been filed against it. Even so, Pfizer
         | resisted complying with an FDA order that it notify patients of
         | new findings that there was a greater risk of fatal fractures
         | in those who had the valve installed before the age of 50. In
         | 1994 the company agreed to pay $10.75 million to settle Justice
         | Department charges that it lied to regulators in seeking
         | approval for the valves; it also agreed to pay $9 million to
         | monitor valve patients at Veterans Administration hospitals or
         | pay for removal of the device.
         | 
         | In 2004 Pfizer announced that it had reached a $60 million
         | settlement of a class-action suit brought by users of Rezulin,
         | a diabetes medication developed by Warner-Lambert, which had
         | withdrawn it from the market shortly before the company was
         | acquired by Pfizer in 2000. The withdrawal came after scores of
         | patients died from acute liver failure said to be caused by the
         | drug.
         | 
         | In 2004, in the wake of revelations about dangerous side
         | effects of Merck's painkiller Vioxx, Pfizer agreed to suspend
         | television advertising for a related medication called
         | Celebrex. The following year, Pfizer admitted that a 1999
         | clinical trial found that elderly patients taking Celebrex had
         | a greatly elevated risk of heart problems.
         | 
         | In 2005 Pfizer withdrew another painkiller, Bextra, from the
         | market after the FDA mandated a "black box" warning about the
         | cardiovascular and gastrointestinal risks of the medication. In
         | 2008 Pfizer announced that it was setting aside $894 million to
         | settle the lawsuits that had been filed in connection with
         | Bextra and Celebrex._
        
         | simonebrunozzi wrote:
         | > How are the laws and regs so unclear that a huge corporation
         | of smart people can't avoid big fines?
         | 
         | Unless these big fines are because such corporation has been
         | really, really bad...
        
         | kilroy123 wrote:
         | I work in health care for a health care start. Literally my co-
         | workers and I were just talking about this. How it's all such a
         | racket and way too expensive and complicated.
         | 
         | How do we get out of this hole? How do we fix health care and
         | fix these issues?
        
         | busyant wrote:
         | > I actually used to work for them as a lawyer, indirectly.
         | 
         | I was a small-time expert witness (on the plaintiff's side)
         | against them in a very small lawsuit. It was the first and last
         | time I served in that capacity.
         | 
         | A child was born with horrific birth defects. Parents claimed
         | that a specific medication caused it. Pfizer obviously said
         | otherwise.
         | 
         | The whole thing left me feeling dirty. Experts charging $600 /
         | hour (this was over a decade ago, so God knows what they charge
         | now) to say, with diamond-hard confidence, whatever their side
         | wanted them to say.
         | 
         | Plaintiff's experts: "That drug _definitely_ caused the birth
         | defects."
         | 
         | Defense experts: "There is no possible way that drug could
         | cause birth defects."
         | 
         | Basically, here was a tragedy, and we all feasted on it. One of
         | the other experts told me I could be "good at this" (selling
         | myself out as an expert), but it just left me feeling dirty.
        
           | rnikander wrote:
           | A woman once told me that she made $300K/year as an "expert
           | witness", on various topics. She was smart and she said she
           | would study a bit and go testify. It blew my mind. I didn't
           | understand whether she was working for the mafia, or if this
           | was legal, or what. I said something like, "but, wait, you're
           | not an expert. The court allows this?" She didn't understand
           | my problem. She seemed entitled; despite her IQ she may not
           | have understood what an actual expert was. I never got to the
           | bottom of it and lost track of her.
        
             | busyant wrote:
             | > she may not have understood what an actual expert was.
             | 
             | There is a legal "standard" around the admissibility of
             | expert testimony
             | (https://en.wikipedia.org/wiki/Daubert_standard).
             | 
             | The person who got me to testify told me he made around
             | $700 K per year. He drove a ~$200K Maybach so I had no
             | reason to doubt him.
             | 
             | I also met a plaintiff's lawyer who told me, roughly, "If
             | the lawsuit ever sees a jury, the jury _never_ understands
             | the science. It 's all about likeability and looking good.
             | I had a juror tell me, 'I picked your side because you had
             | a really nice tie.' So, I always wear a nice tie!"
             | 
             | That was probably a hyperbolic story, but I'm sure there's
             | a lot of truth to it, too.
        
             | vorpalhex wrote:
             | The court does not want a deep guru on every topic. It
             | effectively wants a bridge between a specialized domain and
             | the court itself (which is made of lay people.)
             | 
             | I would expect an Expert to study on the particulars of a
             | case. In general as long as they are sufficiently narrow I
             | don't see a problem here.
        
               | mschuster91 wrote:
               | I'd rather expect someone as a court-appointed expert
               | that they have relevant, certified experience. In
               | Germany, while judges are legally free to appoint whoever
               | they want as experts unless there exist specially
               | certified experts for the class of assessment[1], the
               | parties involved usually present actual experts to the
               | judge for selection - and the opposing side would
               | challenge the selection of non-qualified experts.
               | 
               | [1] https://www.gesetze-im-internet.de/stpo/__73.html
        
               | kwere wrote:
               | a reason for having specialized courts in specific
               | domains of law instead of laymans in the 18th century
               | enlightenment inspired (outdated) system we have. Also
               | checks and balances on judges, one of the most
               | unaccountable caste there is
        
               | irrational wrote:
               | If someone says they are an expert at nuclear
               | engineering, I expect they can build a working reactor in
               | their basement, not that they have read a pamphlet and
               | might know the difference between fission and fusion.
        
               | vorpalhex wrote:
               | Your critera excludes most of the NRC.
               | 
               | The court does not need to build a nuclear reactor. They
               | need someone who can help the court understand nuclear.
               | 
               | Your theoretical person may be a bad choice if they have
               | no communication skills.
        
           | johndhi wrote:
           | Yeah. This, and also the original post (the entire legal
           | system) is based on this adversary system of incentives to
           | demand you did nothing wrong and fight your opponent. It
           | makes it hard to tell what's true.
        
           | sporkland wrote:
           | Here are John Carmack and Tim Sweeney's takes on expert
           | witnesses: https://mobile.twitter.com/id_aa_carmack/status/82
           | 7187311452...
        
           | throwayyy479087 wrote:
           | What was the outcome? I hope the parents won
        
             | busyant wrote:
             | > What was the outcome?
             | 
             | My understanding is that it was messy. The parents/kid got
             | some money. Maybe $1 - 1.5 million?? But my memory is hazy
             | on that. Obviously, their parents' lawyer took some
             | percentage of that.
             | 
             | I'm pretty sure the (parents') lawyer who hired me took on
             | _other_ plaintiff 's lawyers as "investors" (I forget the
             | proper term for what he did). Basically, he didn't have
             | enough money to pay for everything up front [like expert
             | witnesses], so he sold fractional "ownership" in his future
             | earnings on the case in exchange for funds. This was a part
             | of the business that I did not know existed prior to my
             | testimony.
             | 
             | My suspicion is that he took away very little after the
             | rest of us got paid (family, support staff, "investors",
             | etc.).
             | 
             | My deposition was probably pretty typical, but it was
             | shocking to me.
             | 
             | - The defense lawyers flew out to _me_ and rented a
             | conference room at a local law office.
             | 
             | - At around 9AM, the main defense lawyer sat across a table
             | from me and pulled out stack after stack of documents and I
             | thought, _" Wow, she brought a lot of extra reading for
             | herself. I should be done here by around 11 and I can go
             | home and mow the lawn."_
             | 
             | - NOPE! Every stack of documents was there to rebut some
             | specific sentence that I wrote in my initial report.
             | 
             | - There were a lot of insults and efforts to get under my
             | skin. For example, after I used some technical term, she
             | said, _" That's a big word. Do you really know what it
             | means?"_
             | 
             | - The only reason the deposition stopped was because she
             | had to catch a flight back to the west coast around 5 PM.
             | 
             | - The kicker was that "MY" lawyer asked if I'd be willing
             | to give them BOTH (plaintiff AND defense) a ride to the
             | airport (defense lawyer said she'd pay me my rate for the
             | ride).
             | 
             | - I told them I had to get home, but really I took the
             | whole thing too personally because I thought, _" You just
             | insulted me for six-and-a-half hours? Now you want me to
             | drive you to the airport? I'll pass."_
             | 
             | - And then the lawyers took a taxi together like they were
             | old friends.
             | 
             | Obviously, it's just business for them, but I'm not built
             | for that.
        
         | williamscales wrote:
         | > How are the laws and regs so unclear that a huge corporation
         | of smart people can't avoid big fines?
         | 
         | They aren't. What is clear is that a huge corporation of smart
         | people simply don't care about fines.
         | 
         | The answer is to make the fines much bigger, big enough that a
         | single one would threaten the existence of Pfizer.
        
           | johndhi wrote:
           | Based on what research is this a good idea?
           | 
           | The US system is unique and we're entrenched. This is too big
           | a change.
        
           | mym1990 wrote:
           | This is silly, there should be a middle ground. A 1 strike
           | policy would just stifle any innovation coming out of a
           | company.
        
             | williamscales wrote:
             | Yeah, I wouldn't advocate a 1 strike policy. Fines should
             | escalate with repeated violations.
             | 
             | The fines should be tied to revenue and after some
             | violations they should reach the point where the business
             | cannot continue.
        
         | krisoft wrote:
         | > False claims act litigation, for example, is responsible for
         | the second largest settlement listed on this site (phen fen is
         | #1), a notorious and utterly incomprehensible regime where all
         | of the big money settlements relate to aggressive fringe
         | theories asserted by DOJ.
         | 
         | Well. I looked the case up.
         | 
         | Here is how i am understanding it: Pfizer wanted a drug to be
         | approved for a specific use. The FDA rejected it as too risky,
         | approved it for other uses. Pfizer nevertheless was pushing the
         | drug for this unaproved, off-label use. The drug later proved
         | to be dangerous in this off-label use and were whitdrawn from
         | the market.
         | 
         | Am I reading this wrong? What part of this is controversial?
         | 
         | If you ask for permission for something, then been told no you
         | do it anyway and in that process people suffer harm what should
         | happen then?
        
           | johndhi wrote:
           | Off label litigation is a great example of my point.
           | Extremely muddy waters.
           | 
           | Physicians constantly ask pharma about and explore off label
           | drug prescriptions. This is legal: psychiatrist can tell you
           | to take a drug approved for nerve pain for depression. There
           | is research showing it works for depression but it has not
           | technically been added to the label of the drug yet following
           | fda approval. Pharma can provide the studies and answer
           | limited questions on the topic (but no clear guidance) but
           | cannot "promote" this. Is presenting the research promotion?
           | Is the rep discussing it with the doctor promotion? Etc
        
             | esel2k wrote:
             | Just to add how difficult these off-label uses are beeing
             | managed. Every content we provide (be it in a discussion,
             | or a comment in one if our forums or as part of a symposia)
             | needs to be checked for offlabel use. This is a nightmare
             | and every single screen of my apps or of the content that
             | is uploaded needs to be reviewed by medical
             | teams/compliance. Its a nightmare.
             | 
             | Now tell me what is "was promoted by pfizer"? A doctor
             | saying it in a comment/presentation that he tried this with
             | on patient and storing this on one of our digital
             | platforms? It's really grey water...
             | 
             | And add to this hard times for medical reps after covid.
        
         | forgetfreeman wrote:
         | Pffffft. Explain why Pfizer keeps making epic regulatory
         | faceplants when much smaller organizations, ostensibly with
         | less industry experience, routinely manage to navigate
         | regulations in the US without issue?
        
           | unmole wrote:
           | A behemoth like Pfizer is a more attractive target for
           | enforcement agencies?
        
             | spamizbad wrote:
             | Pfizer has more "surface area" but beyond that, no.
             | Prosecutors love shooting fish in a barrel: it actually
             | makes smaller biotech firms more attractive regulation
             | targets.
        
               | johndhi wrote:
               | Disagree. Every civil prosecutor I've ever worked with
               | wants a big "story." They are driven by headlines. Taking
               | down local mom's pharmaco is the opposite of the
               | narrative people want to read in the paper.
               | 
               | We like the headline of this article: megacorp pfizer is
               | evil. That's why we're in this thread, right?
        
               | forgetfreeman wrote:
               | You may disagree but the history of the Office of
               | Inspector General crapping on sub-200 headcount biotech
               | and pharma startups doesn't mesh with any of that. Keep
               | in mind smaller firms don't put up anywhere near the
               | fight a multinational like Pfizer is capable of, and the
               | OIG knows this.
        
             | willcipriano wrote:
             | We are told the opposite fairy tale when it comes to the
             | IRS.
             | 
             | "They have to go after regular people and small business
             | owners because corporations have too many lawyers!"
        
               | Kranar wrote:
               | When you control for population, high income individuals
               | are more likely to be audited than the middle class:
               | 
               | https://www.irs.gov/about-irs/irs-audit-rates-
               | significantly-...
               | 
               | There is no article about it, but the same also holds for
               | businesses. There are just soooo many more small to
               | middle sized businesses compared to large corporations.
        
               | fallingknife wrote:
               | That's what I'm told, but not by the IRS. It is a fairy
               | tale, though. Small businesses cheat on their taxes in
               | incredibly stupid and simple ways. e.g. running personal
               | expenses through the business is absolutely rampant. I
               | even know a guy who got a tax deduction buying a $60K
               | engagement ring this way. This stuff is extremely easy to
               | catch in an audit, and requires very little resources
               | from the IRS. These business owners will always settle
               | quickly and never fight, because they are guilty as hell
               | and it's easy to prove.
               | 
               | At big corps, on the other hand, this type of activity is
               | heavily policed and almost impossible. The idea that
               | large corporations are rampant tax cheats is completely
               | false. The reason that they would never dare is because
               | the IRS has a whistleblower program where you get to keep
               | a percentage of the proceeds, which at a big corp will be
               | multiple millions of dollars. So any intentional tax
               | cheating will be reported and caught immediately by
               | employees who stand to gain more than their salary for
               | their whole career.
               | 
               | The worst that a big corp will ever do is dip a toe into
               | the legal gray areas of tax law. And in that case the IRS
               | will be hesitant to go after them because it takes a ton
               | of resources, and they stand a very high chance of
               | losing. Not because the big corp has too many lawyers,
               | but because the opposition has a legit case, unlike the
               | small business owner who bought his engagement ring on
               | the company card. The idea that anyone has too many
               | lawyers for the government to handle is ridiculous
               | anyway.
               | 
               | So it makes complete sense for the IRS to target small
               | businesses and regular people and not big corps. But
               | people don't like this because it goes against the "big
               | corp bad, small business good" religious belief.
        
               | mschuster91 wrote:
               | > The idea that large corporations are rampant tax cheats
               | is completely false.
               | 
               | And yet, large corporations, especially banks, are
               | _continuously_ caught with blatant abuse of the tax code
               | (e.g. the  "cum ex" scandal in Germany, where banks
               | outright looted the government) or their customers.
               | 
               | The problem is that the fines are way too low. What does
               | a large corporation care about a fine of even a billion
               | dollars? Spread out over the time of the violation,
               | that's petty cash, and as long as the execs don't have to
               | go to jail, D&O insurance will pay any personal
               | punishments.
        
               | fallingknife wrote:
               | Cum ex was a loophole. Which is exactly my point. Large
               | corps don't just openly break the law, they exploit
               | loopholes and gray areas.
        
               | antihero wrote:
               | Also offshore accounting.
        
               | clucas wrote:
               | Interesting, who makes that argument?
        
               | willcipriano wrote:
               | I can find someone making that case with a quick Google:
               | https://www.april15th.com/irs-problems/why-irs-audits-
               | more-s...
               | 
               | > The IRS brings in more dollars per hour auditing small
               | mom and pop businesses, than they do auditing medium and
               | large companies.
               | 
               | > Why is that the case? Because the larger companies keep
               | impeccable records and have tax experts to defend them;
               | Enrolled Agents, CPAs, or tax attorneys that usually know
               | more about the Tax Code than the IRS auditor-employee.
               | 
               | I've found it in my conversations with people justifying
               | the recent increases in IRS agents and the new $600
               | reporting requirement.
        
               | clucas wrote:
               | Reading that link, it appears they are saying the IRS is
               | concentrates its efforts on small businesses because they
               | have the best chance of recovery.
               | 
               | You called it a fairy tale, do you believe that big
               | corporations are actually bigger tax cheats than small
               | businesses, and they're just getting away with it
               | somehow?
        
               | willcipriano wrote:
               | I do not have any of direct evidence of anything, I'm
               | just a guy with a brain. This is one of many in a long
               | series of "coincidences" that when put together starts to
               | become nonsensical.
               | 
               | Look at where we started.
               | 
               | Pfizer gets fined more beacuse they are a bigger company
               | and have more surface area, the law is complex and
               | everyone is breaking it all the time so action against
               | them doesn't mean they did anything wrong. In and of
               | itself fine, that may be true.
               | 
               | Then those same people will later say, the IRS went after
               | that Mexican restaurant instead of Pfizer beacuse they
               | are so big, and run such a tight ship that it would
               | almost impossible to find any wrong doing.
               | 
               | The tax code is very complex, so is drug regulation. Is
               | the idea that Pfizer is hyper competent in tax law but
               | incompetent when it comes to the core business? That
               | doesn't hold water for me.
        
               | clucas wrote:
               | Maybe you're right, but I think it's more likely that
               | Pfizer, as a business, is more willing to accept risk in
               | the pursuit of its core business aims than in its
               | accounting, and that's all we're seeing.
               | https://slatestarcodex.com/2019/01/14/too-many-people-
               | dare-c...
        
               | s1artibartfast wrote:
               | It could also be that the endeavor of drug discovery and
               | manufacture is inherently more risky than accounting.
               | From the academic sense, it is not a field of
               | mathematical certainty, but one of subjective risk-
               | benefit tradeoffs.
        
               | transcriptase wrote:
               | In Canada it's a common argument as to why the CRA goes
               | after waitresses for unclaimed tips and similar trivial
               | cases, versus tackling high-net worth and corporate tax
               | evasion/fraud. It comes down to dollars recovered per
               | agent hour as a metric for the government. The average
               | joe can't afford to tie up the CRA in court for years
               | with high-paid legal teams, which means that their KPI
               | results are negatively correlated with the financial
               | resources of their target. Why spend years _potentially_
               | recovering millions when you can spend minutes recovering
               | hundreds or thousands with virtually no risk?
        
             | forgetfreeman wrote:
             | Nah. Regulators have performance metrics same as everyone.
             | They'll gleefully target 150 headcount biotech firms in a
             | heartbeat if they think there's a win to be had and smaller
             | firms generally dont have the legal war chest required to
             | fight a complianceviolation beef. See Also: OIG going after
             | United Therapeutics on light pretext.
        
           | jollyllama wrote:
           | I'll join the sibling comments in speculation: They're so big
           | that they can either get away with it in aggregate or when
           | they can't, can count on favorable judgements, like the
           | comment about J&J. Favorable in the sense that the
           | individuals personally responsible won't face the
           | ramifications.
        
             | forgetfreeman wrote:
             | Nailed it in one. I'm old enough to vividly remember the
             | first time Pfizer the corporations-are-people business
             | entity was convicted of a felony. In the decades since not
             | only have they failed to substantially alter their approach
             | to compliance issues, most of the largest industry players
             | have followed suit since the profit/loss ratio for ignoring
             | regulations has been shown by Pfizer's financials.
        
           | RcouF1uZ4gsC wrote:
           | Because Pfizer is a bigger target?
           | 
           | Kind of like 3 Felonies a Day, lots of times the
           | laws/regulations are so labyrinthine that if they look at you
           | closely, they will find something.
        
           | hoffs wrote:
           | Because you make example of big player, not small one.
        
             | themaninthedark wrote:
             | But the opposite is claimed with respect to IRS audits.
             | With that we are told the IRS goes after and fines the
             | little guy because the rich can spend money for defense.
             | 
             | Shouldn't we expect to see similar behaviors across
             | regulators?
        
               | wbl wrote:
               | There are very different incentives for different
               | regulators who operate with different bodies of law and
               | degrees of compliance.
        
       | [deleted]
        
       | mulletbum wrote:
       | Can someone point me to one of the 90 incidents that is "Gave
       | false study data."
       | 
       | I went through 10 of them and they are all "Advertising where
       | they shouldn't be" or "incorrectly stating costs."
       | 
       | Comments in here are like a conservative sess pool and it is 3
       | comments in. It is like no one read any of the data. Who would
       | have thought?
        
         | 40amxn40 wrote:
         | No, it's the opposite. The vast majority of studies have
         | dubious methodologies or samples, draw dubious conclusions or
         | extrapoltions using dubious models. Hence the replication
         | crisis.
         | 
         | It's perfectly fine to be skeptical, moreso when colossal
         | monetary incentives are in place.
         | 
         | But, unlike what the HN guidelines say, I think you already
         | know this and that your comment is in bad faith.
        
           | mdorazio wrote:
           | Then it should be trivial for you to do exactly what the
           | parent comment asked for and provide an example rather than
           | calling it a bad faith argument.
        
           | mulletbum wrote:
           | Kind of think your comment is in bad faith....
        
         | rand0mx1 wrote:
         | There are many users on HN with anti-science bias, data means
         | nothing to them
        
           | coldtea wrote:
           | Yeah, and most of them root for Pfizer because "private for
           | profit company == science"...
        
             | stonogo wrote:
             | I run in some fairly lefty circles and I can safely state
             | I've never heard of anyone (of ANY political leaning) "root
             | for Pfizer" edit: except their actual paid PR people.
        
               | mbg721 wrote:
               | And anybody who holds significant shares of their stock.
        
               | stonogo wrote:
               | No, the folks I know are more likely to sell stock they
               | don't like than cheer for it against their own
               | principles. That's assuming they buy individual stocks,
               | which most people don't.
        
               | mbg721 wrote:
               | Those people don't hold an amount that's significant,
               | though.
        
         | dilap wrote:
         | I don't know if anything ever came of it, but a whistleblower
         | in their covid vaccine trial alleged data issues and ignoring
         | negative side effects:
         | 
         | > A regional director who was employed at the research
         | organisation Ventavia Research Group has told The BMJ that the
         | company falsified data, unblinded patients, employed
         | inadequately trained vaccinators, and was slow to follow up on
         | adverse events reported in Pfizer's pivotal phase III trial.
         | Staff who conducted quality control checks were overwhelmed by
         | the volume of problems they were finding. After repeatedly
         | notifying Ventavia of these problems, the regional director,
         | Brook Jackson (video 1), emailed a complaint to the US Food and
         | Drug Administration (FDA). Ventavia fired her later the same
         | day
         | 
         | https://www.bmj.com/content/375/bmj.n2635
         | 
         | Even things like "Advertising where they shouldn't be" are not
         | neccessarily innocuous; e.g. it can be promoting use of a drug
         | in a situation that is known to be unsafe. In lawsuits
         | regarding Bextra (which Pfizer ended up settling for around
         | 1b),
         | 
         | > the state alleged that despite the significant safety
         | concerns that led FDA to reject a request to market high dose
         | Bextra for acute and surgical pain, Pfizer conducted a
         | systematic, multi-pronged "off-label" promotional campaign for
         | these very indications.
        
       | mlcrypto wrote:
       | Funny how fast these drug companies gained the undying trust of
       | every liberal overnight. Almost like it was orchestrated
        
         | woodruffw wrote:
         | Pfizer does not have my "undying trust," nor are they required
         | to for me to get a vaccine. I've been getting vaccines under
         | the same regulatory framework for my entire life, and all (to a
         | first approximation) were made by companies that I despise.
        
         | ausbah wrote:
         | what was orchestrated exactly? I am not a fan of big corps in
         | general, but if they're offering an effective solution to
         | sudden global crisis I will give credit where credit is due.
        
         | llanowarelves wrote:
         | After Occupy Wallstreet, big banks and companies realized they
         | could redirect the heat ("eat the rich", mock guillotines etc.)
         | they were taking from the left elsewhere by taking up such
         | vocabulary, heaping praise on feminism, LGBT, POC, etc. and
         | other corporate social justice. It seems to have worked.
         | 
         | How can someone be bad if they are speaking nicely about,
         | advertising, and helping these groups? They can't.
         | 
         | And most recently, SBF (someone with experience doing it)
         | confirmed this with his DMs about how you're expected to say
         | these things to stay on good terms.
         | 
         | And this is not even getting into the revolving door between
         | industry and regulation, which may be the real story, but the
         | above providing social cover, backed by media as PR.
        
         | someNameIG wrote:
         | I'm a biologist, I don't trust the companies, I trust the
         | published research and global regulatory bodies. And given the
         | reason Pfizer has been discussed by the general public in the
         | last few years, I'll remind everyone Moderna also exists :)
        
         | Mistletoe wrote:
         | Yes and 19.8 million people are still alive because of it in
         | the first year.
         | 
         | https://www.thelancet.com/journals/laninf/article/PIIS1473-3...
         | 
         | For comparison, World War I was 40 million casualties.
        
           | t0bia_s wrote:
           | Story is not finished. Thousands, maybe even milions are
           | already dead because of them, millions have serious damage
           | health because of them. Trials are not finished yet so we
           | don't even know what will happen in long term. Also... Excess
           | mortality in various countries is above average.
           | 
           | Neil M., Fenton N.E.: Latest statistics on England mortality
           | data suggest systematic mis-categorisation of vaccine status
           | and uncertain effectiveness of Covid-19 vaccination, December
           | 2021, preprint https://www.researchgate.net/publication/35675
           | 6711_Latest_st...
           | 
           | Beattie K.A.: Worldwide Bayesian Causal Impact Analysis of
           | Vaccine Administration on Deaths and Cases Associated with
           | Covid-19: A Big Data Analysis of 145 Countries, 15 Nov 2021
           | https://vector-
           | news.github.io/editorials/CausalAnalysisRepor...
           | 
           | Britt TJ. et al: Group Life Covid-19 Mortality Survey Report,
           | August 2022 https://www.soa.org/4a368a/globalassets/assets/fi
           | les/resourc...
           | 
           | Kuhbandner Ch., Reitzner M.: Excess mortality in Germany
           | 2020-2022, August 2022, preprint
           | https://www.eugyppius.com/p/exhaustive-study-of-german-
           | morta...
           | 
           | Morz M.: A Case Reporti: MUltifocal Necrotizing Encephalitis
           | and Myocarditis after BNT162b2 mRNA Vaccination against
           | COVID-19, Vaccines 2022, 10(10), 1651, Oct 01, 2022
           | https://www.mdpi.com/2076-393X/10/10/1651
           | 
           | https://ec.europa.eu/eurostat/web/products-eurostat-
           | news/-/d...
           | 
           | https://ec.europa.eu/eurostat/databrowser/view/demo_mexrt/de.
           | ..
           | 
           | https://www.skirsch.com/covid/GermanAnalysis.pdf
           | 
           | https://www.researchgate.net/publication/355581860_COVID_vac.
           | ..
        
             | ausbah wrote:
             | I don't have the domain expertise nor the time to address
             | everything you've posted - and maybe these aren't valid
             | reasons to distrust what you've shared - but I'm skeptical
             | of your conclusion bc many are unreviewed studies from over
             | a year ago by authors who don't have relevant background,
             | and few are straight up right wing rags full of conspiracy
             | theories & other nonsense.
        
               | z3c0 wrote:
               | Since COVID, I've noticed a "quantity over quality"
               | strategy deployed en masse by the pseudo-intellectual
               | right. It allows one to give the impression of a well-
               | researched response without doing any of the needed work.
               | 
               | It's almost as if they realize that posting a wall of
               | links will daunt most into not questioning them, even if
               | most of the links wouldn't survive a hint of scrutiny.
        
               | t0bia_s wrote:
               | I also noticed, that people who dont have arguments or
               | refuse to read, likes to post off topic.
        
               | z3c0 wrote:
               | You might need a preening; your feathers are looking
               | rustled.
        
               | t0bia_s wrote:
               | So why bother to judge something that you refuse to read?
               | Are you serious?
               | 
               | Graphs from EU data about excess mortality are conspiracy
               | theories now?
        
               | nerdponx wrote:
               | > So why bother to judge something that you refuse to
               | read?
               | 
               | They _did_ read it, and concluded it wasn 't useful.
               | 
               | > Graphs from EU data about excess mortality are
               | conspiracy theories now?
               | 
               | Excess mortality, by design, does not say anything about
               | causes. In the USA for example, you can hypothesize a
               | variety of plausible reasons for continued high excess
               | mortality, pandemic-related and otherwise (increased
               | crime, lower incomes, decreased access to non-Covid
               | healthcare, increased highway speeds, et alia), but the
               | excess mortality number itself cannot tell you the
               | relative strengths of those causes.
        
               | t0bia_s wrote:
               | "They did read it, and concluded it wasn't useful."
               | 
               | Response was few minutes after post. No wonder that
               | answer is not even related to content of links.
        
               | ausbah wrote:
               | I never mentioned the dashboards, I'm on mobile so they
               | weren't loading for me. Also yes, I think I can give a
               | pretty good judgement on the quality of a piece based on
               | simple heuristics like the quality of the hosting site,
               | or the background credentials of the authors.
        
               | t0bia_s wrote:
               | Be more specific. What background of which author? What
               | quality of hosting site?
        
               | mikeyouse wrote:
               | Posting charts reflecting excess mortality during a
               | pandemic and attributing that to the vaccine gives the
               | game away a bit, no?
        
               | PuppyTailWags wrote:
               | tbh, I didn't see any establishment of causal
               | relationship with excess mortality. This is like
               | debugging a program by looking at the git history,
               | without actually seriously thinking about what the bug
               | actually is. It could be something recent. It could be
               | something that was messed up ages ago and is only coming
               | to rear its head now.
        
               | nerdponx wrote:
               | You should see the trash that gets posted in anti-vaccine
               | groups. There are whole nutritional and supplement
               | protocols meant to counteract "vaccine damage", and these
               | pseudo-science studies get paraded around like religious
               | texts.
        
             | pfisherman wrote:
             | Sorry but we have more hard data on the COVID vaccine(s)
             | than pretty much any drug in recorded history.
             | 
             | With things like electronic health records, insurance
             | claims databases, and state vaccine registries; it is
             | trivial to check whether or not someone who is admitted to
             | a hospital for COVID hot a vaccine or not.
             | 
             | Arguing that the COVID vaccines we have available in the US
             | are not effective is like arguing that the average global
             | temperature has not increased over the last 50 years, or
             | that smoking does not increase the risk of lung cancer and
             | emphysema. You are making extraordinary claims that
             | contradict a mountain of data.
        
               | t0bia_s wrote:
               | Yet, you are not link any data.
        
             | [deleted]
        
       | analog31 wrote:
       | Interesting website. For reference, I checked Ford Motor Company,
       | and they're at roughly 1/2 billion. Microsoft 1/3 billion.
       | 
       | My start-up isn't on the list. I paid a $15 penalty for late
       | filing of state sales tax one year. ;-)
        
         | mkoryak wrote:
         | Maybe we can increase your fines: Please tell us of any laws
         | your startup have broken
        
       | pcrh wrote:
       | Frankly, this is an illustration why punitive action against
       | senior executives is the best way to prevent corporate
       | malfeasance.
        
         | 93po wrote:
         | I think the best way is to treat corporations like people -
         | they go to prison. Shut down operations for however many years
         | and disallow them from making transactions of any sort during
         | their sentence. Going after executives is just going to lead to
         | scapegoats.
        
       | swader999 wrote:
       | Safe and effective!
        
       | TheMagicHorsey wrote:
       | Anyone that has worked in any highly regulated industry knows
       | that its almost impossible to comply with every rule. Even the
       | regulators themselves, (and the ex-regulators that you hire to
       | run your compliance team) often have absolutely no idea how to
       | get anything done AND comply with all the regs.
       | 
       | As an example, its simply impossible to build a factory on a
       | greenfield site in California today and comply with all the regs.
       | Its just insane.
       | 
       | Or try to set up a drone testing field anywhere in California.
        
         | hansel_der wrote:
         | > Anyone that has worked in any highly regulated industry knows
         | that its almost impossible to comply with every rule.
         | 
         | true
         | 
         | otoh there is something like "compliance with the spirit of the
         | regulation" that is morally acceptable but will be exploited
         | unless fiercely and proactively defended.
        
         | ibejoeb wrote:
         | It's certainly true that some regs exist solely as alternative
         | tax regimes, but Pfizer is chock full of really bad stuff.
         | 
         | There are numerous instances of falsified study data and many
         | instances of injury.
         | 
         | We can't have it both ways. Since we're going down the
         | compulsory dosing route, and we can bypass the necessarily
         | arduous approval process for drugs, someone's gotta pay up when
         | there's a mess.
         | 
         | This is the same thing that caused the Boeing fiasco. "It's
         | really hard to certify an airframe" turned into "in this case
         | it's nbd," and that turned into a bunch of planes crashing.
        
       | yashap wrote:
       | I think the largest fine here, the $3.75 billion fine for the
       | American Home Products diet drug in 2002
       | (https://violationtracker.goodjobsfirst.org/violation-
       | tracker...), is mis-attributed to Pfizer. American Home Products
       | became Wyeth Pharmaceuticals, who were acquired by Pfizer in
       | 2009, 7 years after this fine.
       | 
       | Pfizer weren't involved with them in 2002, so I don't see how
       | this five can be reasonably attributed to Pfizer.
        
         | menage wrote:
         | I think that depends a bit on how many of the folks tainted by
         | the AHP violation are still working at Pfizer. If Pfizer is
         | made up of a bunch of companies that had violations themselves
         | before acquisition, that's probably reflected in the current
         | company culture.
        
           | klabb3 wrote:
           | Not to mention that acquiring a company that's been massively
           | fined for these reasons is a statement in itself. (Statement
           | being somewhere between "we don't give a shit" and "good job,
           | even we didn't think of that")
        
         | [deleted]
        
       | mchusma wrote:
       | Looking at the top settlements here I think as a society we would
       | be better off without these able to be this big. Generally
       | speaking they all seem to relate to off-label use (which I think
       | we should generally be more permissive of) and false claims. But
       | looking through one case, https://www.seegerweiss.com/drug-
       | injury/rezulin-lawsuit/ it seems that liver damage was a known
       | side effect. I don't see any real indication that this was
       | hidden, it was a part of the FDA filing. It seemed like a "net
       | positive", and then later it was decided "no, probably not".
       | 
       | The issues here seem more related to binary FDA categories. It
       | basically either: 1) Banned 2) Approved and must be covered by
       | insurance
       | 
       | When there really can and should be more categories of risk,
       | like: 1) Banned because we know this is super bad 2) Not banned,
       | but not recommended 3) Not banned, seems ok but there are bad
       | side effects or other concerns that warrant attention 4) Not
       | banned, seems good, lots of good data and this should definitely
       | be covered
       | 
       | This would allow companies to put drugs in the market to help
       | people, but set realistic expectations. There is no fraud if the
       | data is there and the categories are clear.
        
       | sschueller wrote:
       | Credit Suisse paid over 11 Billion in fines in the last 10 years.
       | [1]
       | 
       | [1] https://www.srf.ch/news/wirtschaft/credit-suisse-unter-
       | druck...
        
         | forgetfreeman wrote:
         | We're talking about Pfizer.
        
       | walterbell wrote:
       | J&J has $15B in penalties, but has an innovative legal strategy,
       | https://www.esquire.com/news-politics/politics/a41191693/joh... &
       | https://www.newyorker.com/magazine/2022/09/19/johnson-johnso...
       | 
       |  _> Deploying a legal maneuver first used by Koch Industries,
       | Johnson  & Johnson, a company valued at nearly half a trillion
       | dollars, with a credit rating higher than that of the United
       | States government, declared bankruptcy. Because of that move, the
       | fate of forty thousand current lawsuits and the possibility of
       | future claims by cancer victims or their survivors now rests with
       | a single bankruptcy judge in the company's home state, New
       | Jersey._
        
         | lotsofpulp wrote:
         | https://www.investopedia.com/texas-two-step-bankruptcy-defin...
         | 
         | Why would a non corrupt judge allow this "transfer of
         | liabilities"?
         | 
         | > In June 2021, one such lawsuit resulted in an appeals court
         | in Missouri ordering the company to pay $2.1 billion to the
         | claimants. Later that year, the company used a divisive merger
         | to create a new subsidiary called LTL Management LLC,
         | transferring its talcum-related liabilities to that subsidiary
         | along with a $2 billion trust intended to provide funding for
         | any potential future claims against LTL.
        
           | ClarityJones wrote:
           | The maneuver can be pierced if the plaintiffs prove that the
           | subsidiary was undercapitalized.
           | 
           | So, a non-corrupt judge may allow this if the maneuver is
           | genuinely done for accounting / management / etc. reasons and
           | the new subsidiary has sufficient capital to cover the
           | liabilities.
           | 
           | A non-corrupt judge may also "allow" it if the plaintiffs
           | never attempt to pierce the veil in the first place. Like a
           | lizard casting off its tail, this may be enough to appease
           | the lawyers representing the class. With the issue never
           | getting to the judge, the judge never has enough information
           | to disallow it.
        
             | shkkmo wrote:
             | > the maneuver is genuinely done for accounting /
             | management / etc. reasons
             | 
             | What sort of reasons could those be? I don't see any reason
             | for those types of maneuvers besides trying to sidestep
             | some amount of liability.
        
               | ClarityJones wrote:
               | If we frame it as a maneuver that's associated with /
               | driven by a major liability, then that sort of begs the
               | question.
               | 
               | However, generally, companies may spin brands off for
               | reasons such as:
               | https://www.finra.org/investors/insights/splitting-
               | differenc...
               | 
               | Are these reasons sometimes convenient covers for what is
               | really an attempt to avoid liability? Of course, and
               | probably fairly often.
        
           | DSingularity wrote:
           | Because justice is blind. Don't you love the platitudes that
           | only seem to benefit the establishment?
        
         | funstuff007 wrote:
         | another win for the ratings agencies...
        
       | varispeed wrote:
       | Penalties or costs of doing business?
        
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       (page generated 2022-12-21 23:02 UTC)