8. In 2001, TAP Pharmaceuticals pled guilty to par ticipating in a criminal conspirac y with doctors
Question:
8. In 2001, TAP Pharmaceuticals pled guilty to par ticipating in a criminal conspirac y with doctors by providing free samples of Lupron for which the doctors later billed Medicare and patients. Federal prosecutors also charged TAP executives and midlevel managers with fraud, alleging that TAP employees bribed doctors and hospitals with cash, free vacations, and free samples as an incenti ve for them to prescribe Lupron. Defendants argued that the samples and gifts were standard industry practice and did not amount to a bribe. In December 2004, a jur y acquitted the indi viduals involved. TAP itself settled its case with the go vernment by agreeing to pay $150 million resti- tution to consumers and insurance companies for what the government charged were artif cially inflated drug prices. The prices were inf ated because of the alle ged bribes paid to doctors
Step by Step Answer:
Business Ethics : Decision Making For Personal Integrity And Social Responsibility
ISBN: 157228
2nd Edition
Authors: Laura Pincus Hartman; Joseph R. DesJardins