Pharmaceutical company stock falls after Justice Department files fraud charges

[Why Syzygy]

Stock page:
http://topics.nytimes.com/top/news/business/companies/forest_laboratories_inc/index.html?inline=nyt-org

Story:
http://www.nytimes.com/2009/02/26/business/26drug.html?_r=1&em=&adxnnl=1&adxnnlx=1235711653-Tqe+09mQj2Qu8JujOy3JMg

Drug Maker Is Accused of Fraud

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By BARRY MEIER and BENEDICT CAREY
Published: February 25, 2009
~snips~
In a civil complaint filed by the United States attorney’s office in Boston, federal prosecutors alleged that former top executives at Forest concealed for several years a clinical study that showed that the drugs were not effective in children and might even pose risks to them, including causing some to become suicidal.

From 2001 to 2004, Forest heavily promoted results from another clinical trial it had financed that showed that the drugs were effective, without disclosing the negative study to those researchers, its own medical advisers or its sales representatives, the complaint said.
~snips~
The filing follows a long-running federal investigation that began with complaints filed by two former company officials. Under the civil charges brought against Forest, the government is seeking to recover up to three times the amount of money spent by federal programs to pay for pediatric prescriptions of Celexa and Lexapro, but did not specify a figure.

Prosecutors also charged that Forest paid kickbacks, in the form of baseball tickets and gift certificates to expensive restaurants, to doctors who prescribed its drugs, and provided some doctors with paid vacations. The complaint also charges that the company separately ran so-called seeding studies, or trials that were really marketing efforts to promote the drugs’ use by doctors.

Forest’s stock fell in late afternoon trading, after news of the lawsuit began to circulate, ending down more than 5 percent, at $23.14.
~full story @ link

Selective science at your service. There are also charges of manipulating generic competition.
Emphasis:
"investigation that began with complaints filed by two former company officials"

[WillYourVoteBCounted]

1. Wow, sounds like Change is a coming to town

it shocks me to see the right thing happen.

[Why Syzygy]

3. Hope to see a lot more

with the advent of Universal Health Care.

[glinda]

2. All the Pharma Companies should be investigated as "Drug Pushers"

[Why Syzygy]

4. A new thread indicates

a general drop in stock prices for pharmaceutical companies.
They gambled with our lives, and the winning streak is over.
Gamble long enough, and you will loose.

[flyingobject]

5. The party's over for the Big Pharma oh but thats right they have..

vacciness to peddle.

Vaccines for everything.

Imagine if they had a vaccine to enlarge tiny weenies?

:)