Preview

Case Study

Satisfactory Essays
Open Document
Open Document
468 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study
Case Study
Complete Case: Amgen Whistleblowing
Read and write up an executive summary on the case, including answers to the following questions. 1. How did Amgen's unethical behavior contribute to the problems with Medicaid kickbacks? 2. Why does the public consider this scandal to have an unethical dilemma? 3. Explain what is meant by whistleblowing?
Include your opinions and identify any gaps between public expectations of ethical standards and universal professional codes of ethical standards.
Case : Amgen Whistleblowing Case

Amgen, a Thousand Oaks, California–based company, had the unenviable task of dealing with lawsuits filed by 15 states in 2009 alleging a Medicaid kickback scheme.1 To make matters worse, two additional whistleblowing lawsuits were filed against the company in Ventura County. The complaints, which don't appear related to the fraud alleged by the group of states, were brought by former employees who said they had uncovered wrongdoing at the biotech giant and were terminated after they raised red flags to superiors. One employee alleged the company violated federal law by under-reporting complaints and problems with the company's drugs after they hit the market. The facts of that lawsuit are described below.

Former Amgen employee Shawn O'Brien sued Amgen for wrongful termination on October 9, 2009, alleging he was laid off in October 2007 in retaliation for raising concerns about how the company reported complaints and problems with drugs already on the market. O'Brien worked as a senior project manager for Amgen's “Ongoing Change Program,” according to the lawsuit filed in Ventura County Superior Court. His job was to improve Amgen's “compliance processes with high inherent risk to public safety, major criminal and civil liability, or both,” according to the lawsuit.
The lawsuit alleged that in April 2007, Amgen's board of directors flagged the company's process for dealing with post-market complaints about drugs as a

You May Also Find These Documents Helpful

  • Good Essays

    Class Make up Case Brie1

    • 818 Words
    • 3 Pages

    Facts: In 1998, the investigative reporting husband and wife team, Jane Akre and Steve Wilson, filed suit against their employer New World Communications of Tampa, Inc. (WVTV), a subsidiary of Fox TV, stating they violated the Florida’s whistleblower statues. They argued that WVTV terminated their employment under the grounds of retaliation after they refused to suppress and distort the contents of a story regarding the controversial Bovine Growth Hormone in Florida’s cattle. They also brought forth additional claims of declaratory relief and breach of contract. After a four week jury trial they found against Wilson and all of his claims. Akre dropped allegations concerning declaratory relief and the court allowed the whistle-blower claims to be moved forward. Akre won a monetary award from the jury of $425,000 based on the retaliation charges established by the whistle-blower statue.…

    • 818 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    In a recent ruling in 2009, Anthony M. Kennedy took part in a 6-3 ruling with other justices in the case of Wyeth v. Levine. Diane Levine filed a personal injury claim against a drug manufacturer named Wyeth, stating that because they had failed to properly label their product her arm had to be amputated. The plaintiff injected Phenergan, a drug used to prevent allergies and motion sickness into her arm. Due to complications from this injection, her arm had to be amputated. The Supreme Court of Vermont ruled in favor of the plaintiff (Ms. Levine). The court confirmed that the FDA imply provides the ground work for regulation in each state but each state is free to create stricter labeling requirements.…

    • 187 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    The Medicines Company

    • 868 Words
    • 5 Pages

    The Medicines Company Case Write-Up: Terence Cho, Felipe Duarte, Aleks Loiko, Robert Shaw, and James Wang…

    • 868 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Pfizer has been involved in numerous litigations, which resulted in two things: damaged reputation and enormous payouts. The two biggest litigations concerned the pain killer Bextra and related off-label promotions and illegal drug testing on seriously ill children in Nigeria during a meningitis epidemic. The first was settled in 2008 by paying $2.3 billion in charges and the latter involved paying a fine of $75 million in April 2009. The discontinued projects reflect a loss of resources and also in the perceived inability to complete research projects. From September 2008…

    • 865 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    KEL531 PDF ENG

    • 6147 Words
    • 32 Pages

    issues loomed. As a result, Amgen’s stock was not performing well; it had peaked in 2005 at…

    • 6147 Words
    • 32 Pages
    Powerful Essays
  • Good Essays

    The parties involved in the article is the pharmaceutical companies, health care professionals, and patients. The pharmaceutical companies…

    • 738 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Case Study

    • 1915 Words
    • 8 Pages

    Incremental cash flows is the difference between the cash flows a company will have if it implements the new project versus the cash flows the company will have if they choose not to embark on the project. Cash flows not attributable to the new project are irrelevant to the investment decision making process. Comparing the two cash flows will show how much better or worse off the company may be by implementing the new project.…

    • 1915 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    The complaint accused Forest Laboratories of violating laws under the False Claims Act stating that personnel of Forest Laboratories improperly promoted Lexapro for off-label pediatric use. Forest Laboratories was accused of paying physicians to encourage them to prescribe Lexapro and other drugs created by them. Additionally, Forest Laboratories was accused of blocking negative publications of one of their trials and reports that individuals suffered from increased suicidal ideations. The lawsuit was eventually settled in 2010 for the sum of 149 million (Carandang, MacBride,…

    • 1630 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    The case started with a company called ImClone. ImClone was a hot biotech company in which the owner, Sam Waksal, thought was about to get a lot hotter. With the introduction of a cancer drug called Erbitux, Waksal's company was going to skyrocket…or so he thought. The drug had only one stipulation until its success, and that was to pass through the strict eye of the FDA.…

    • 2682 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    There are many people who would argue the fact that the pharmaceutical companies in the world are villains. They may declare this because…

    • 730 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Outline For Whistleblower

    • 2736 Words
    • 11 Pages

    civic activist Ralph Nader coined the phrase in the early 1970s to avoid the negative connotations found in other words such as "informers" and "snitches" (Nader, Petkas, Blackwell, 1972). Duschinski, (2013), in an article called, “Whistleblowers Who Shaped Modern U.S. History” stated, “transpose friends with employers or government, and you have what we today term a “whistleblower”, individuals compelled by conviction, perhaps, or possibly treasure-seeking publicity hounds? Time tells”. However, in order to have a fundamental understanding of what is a whistleblower, one must understand what constitutes whistleblowing in an organization, what are some of the laws that protect whistleblowers, what are several examples of employees blowing the whistle, and their…

    • 2736 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Case Study

    • 1353 Words
    • 6 Pages

    The Krispy Kreme Doughnuts case study solution solves the case on financial statement analysis. The structure of the solution is outlined below and answers the questions included in the outline…

    • 1353 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Nicolas

    • 310 Words
    • 2 Pages

    There is one month ago, we learned that Nippon Big Pharma has bought the entire stock of one product similar to IMMUVAX but with better technology from a small company whose name is Private bio. This product calls CANCER 01 and is also in pivotal phase 3 human clinical trials. We really suspect that Nippon Big Pharma had enrolled more patients in those Cancer 01 clinical trials than our product because the company expects more profit and own 100% of net profit.…

    • 310 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Case Study

    • 687 Words
    • 2 Pages

    For almost a centennial since 1914, the Tasty baking company has been producing about 5 million snacks (pies, cakes, cookies, doughnuts etc.) each day. The famous treat company hit an all time high in 2001 by grossing $166 Million dollars in sales, however since then, sales have been dormant. In 2003 dozens of other food companies in the industry launched hundreds of low-carb products onto their retailers' shelves knowing that this health food craze showed no signs of diminishing anytime soon. The, then new, CEO of Tastykake Charles Pizzi, made the decision to give the company a revamp in 2004, by announcing a ground-breaking new product line to be launch. The new innovative line would be focused towards the healthier, low fat, low sugar trend that came about in their industry. It would only make sense for the hundred year old company to keep up with the times/ trends.…

    • 687 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Case Study

    • 957 Words
    • 4 Pages

    Recently, the website of Ankit Fadia, a well-known ethical hacker, was hacked by another group that goes by the name Team Grey Hat (TGH). The “hactivist” group entered Ankit Fadia’s official site and exposed his credentials, including sensitive data, student details, database credentials (like name, user name & password). In a blog message, TGH also rubbished Fadia as a hacker and his courses…

    • 957 Words
    • 4 Pages
    Good Essays

Related Topics