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Biotech firms under scrutiny for corporate fraud

Published on 24 Feb 2010 under category: legal

Biotech and pharmaceutical companies have been subject to more fraud scrutiny and enforcement, claims a new report.

The study by The Financier found that US authorities had investigated several high-profile companies over the past 18 months for suspected violations of rules and regulations, with many cases resulting in civil settlements and criminal fines.

According to Muazzin Mehrban, authorities have targeted these industries because of the high costs of fraud. He says that during 2009, fraud in these sectors amounted to $866.7 million.

In one case he cites, Pfizer ended up settling a $.1.3 billion criminal fine after it was accused of illegally marketing an anti-inflammatory drug.

Michael Koon, a US law expert cited by Mehrban, warned that companies which want to avoid charges of criminal conduct should keep up to date with legislation and make sure that products are marketed in such a way that customers cannot be misled.

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