E-DRUG: Companies fined in drug price fixing scandal
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WASHINGTON, May 20 -- United States Attorney General Janet Reno said on
Thursday that Roche Holding and BASF AG will pay a record $725 million
in fines and a former executive will go to jail to settle criminal
charges they fixed vitamin prices.
Reno said Roche of Switzerland will pay $500 million and BASF of Germany
will pay $225 million for participating in a worldwide conspiracy to set
prices. Kuno Sommer, former director of worldwide marketing for
Hoffmann-LaRoche vitamins and fine chemicals, will serve a 4-month
prison sentence and pay a $100,000 fine, she said.
"These prosecutions demonstrate that we will not allow international
cartels to prey on American consumers in our globalized economy," Reno
said in prepared remarks to be delivered at a news conference.
Rhone-Poulenc SA, a French pharmaceutical company, has been cooperating
with the U.S. government under its Corporate Leniency Program. A company
can qualify for protection from criminal prosecution if it voluntarily
reports its involvement in a crime, the Justice Department said.
Justice Department antitrust division chief Joel Klein said that the
"conspiracy has affected more than $5 billion of commerce in products
found in every American household."
Source: Reuters, Washington Post
[Note from the co-moderator: More than a decade ago, I read a book
'Roche versus Adams' written by Stanley Adams who used to work at Roche.
I think Adams first made public the price fixing scandal in the vitamins
business. I think Adams suffered a lot because of exposing Roche. It is
interesting to note that this issue has come back again and the
companies are still involved in this kind of criminal activity. Does any
one know the whereabouts of Adams? May be we can get Adams reaction on
this new development. Syed Rizwanuddin Ahmad, srahmad@essential.org]
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