GSK and ‘Future Wrongdoing’…


“….Whilst these originate in a different era for the company, they cannot and will not be ignored,” Sir Andrew said. “On behalf of GSK, I want to express our regret and reiterate that we have learnt from the mistakes that were made….”


“….The 100 top managers in the US business and the executive board will have to set aside a portion of their annual pay for three years in case they are found to be complicit in future wrongdoing, and the company will be able to claw back up to three times their annual bonus and long-term incentive pay…..

https://www.independent.co.uk/news/business/news/glaxosmithkline-pays-3bn-for-illegally-marketing-depression-drug-7904555.html

Interesting section of this article (brought to my attention by Sarah Price-Hancock- Thanks Sarah).

When GSK were fined 3 Billion for their various unethical shenanigans in 2012, one of the stipulations seems to imply that up to 100 of the top executives and managers would be liable to pay for any ‘future wrong-doing’.

Isn’t that incredible? as part of their corporate integrity agreement with the US dept of Justice they actually had to put in a part about ‘future wrong-doing’, as if they expected GSK to carry on committing fraud and unscrupulous business practices.

In 2014, GSK were then caught operating a massive bribery operation in China, and they were fined there too (half a billion US dollars).

It seems that this ‘future wrong-doing clause’ was a prophecy, because GSK did plenty more wrong-doing, however it seems the corporate integrity agreement wasn’t worth the paper it was written on…

Let’s hope the SEC, and the department of Justice in the US, have more bite than the utterly toothless sham-joke SFO in the UK.


 

The company pleaded guilty to criminal charges related to the marketing of Paxil for use by children between 1999 and 2003, when it:

* failed to reveal the existence of two scientific studies that showed the drug was ineffective in treating childhood depression;

* cut out important caveats to the conclusion of a third study which suggested it may improve a small number of symptoms in children;

* over-hyped the conclusions of that study, after it was published, in marketing materials at conferences and distributed to doctors.

GSK also illegally promoted Wellbutrin, another antidepressant, for the treatment of adult impotence, obesity and attention deficit, according to its guilty plea yesterday.

 

“….Sara Carlin, 18, was a talented student who dreamt of becoming a doctor, only for her to take her own life back in 2007, a little over a year after being prescribed anti-depressants. She was found hanging in the basement of her family home in Oakville, Canada.

The country’s health authorities put out warnings in 2003 and 2004 that prescribing newer antidepressants such as Paxil to teenagers could lead to behavioural changes and self-harm, but Sara brushed off her mother’s attempts to warn her off such drugs, saying her doctor had said they would lift her mood.

Colin Whitfield, 56, died just two weeks after he began taking the antidepressant drug Seroxat. The retired Welsh teacher was found in the garden shed of the family home having slit his own wrists in 2002.

At the inquest the coroner said that he had “grave concerns that this is a dangerous drug that should be withdrawn until detailed national studies are undertaken.”

Kathryn, Colin’s wife of more than 30 years, said that she had noticed a profound change in her husband’s behaviour once he started taking Seroxat, and the drug may have contributed to his unexpected suicide. “It didn’t fit the picture of who he was and we have no doubt that it was the drug that caused him to do it. He was a very caring, very protective father,” she said….”

Advertisements

Department of Justice and SEC Investigations Into GSK Still Ongoing Despite UK Serious Fraud Office Dubioulsy Dropping GSK Fraud Case..


After spending £7.5 Million on a 5 year investigation into GSK, the serious fraud office decided to drop the case (see here). I wasn’t surprised at this, because GSK are one of the most powerful UK companies. They are the Pharma cash cow in the UK, and the powers that be in England were never going to let a little thing like international mass fraud, bribery schemes, corruption and damage to consumers of GSK meds, get in the way of GSK’s (and thus- the UK’s) lucrative profits were they?

Of course not..

However, despite the UK’s thoroughly cowardly approach to GSK’s consistent bad behavior, it seems that the Department of Justice and the SEC in the US are continuing their investigations- presumably based on some of the info gleaned from the UK’s expensive SFO investigation.

Whether any of the information from this SFO investigation will ever see the light of day, is another matter. Furthermore, whether the Department of Justice or the SEC will take any disciplinary action against GSK, in light of all this, also remains to be seen.

I won’t hold my breath.

Anyhow, See Page 92/93 of GSK’s annual report for more on this..


https://www.gsk.com/media/5344/financial-statements.pdf

DOJ.png