Former Bristol-Myers execs indicted
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Manufacturing News, Source : TheManufacturer.com
Published : 16 Jun 2005 18:29
Two former Bristol-Myers Squibb Co. executives have been charged with conspiracy and securities fraud.
According to allegations brought forth by US prosecutors, the company’s ex CFO Frederick Schiff and former medicine group head Richard Lane artificially boosted Bristol-Myers’s revenue and profit. Schiff and Lane are accused of manipulating the company’s prescription drug inventory to inflate financial results between 1999 and 2001.
In an announcement Wednesday by Christopher Christie, the US Attorney General in Newark, NJ, a $300 million settlement has been reached with Bristol-Myers. At present, neither the company nor any of its present staff will be charged in connection with the inventory investigation. Both Schiff and Lane resigned in 2002.
Under the terms of the settlement charges against the company will be deferred for two years while the company institutes programs and measures to prevent future fraud. If at the end of the two years the prosecutors are satisfied, charges against Bristol-Myers will be dropped. "The government will not pursue its filed criminal complaint if it is satisfied after two years that the company has complied with all of the terms of the agreement," Bristol-Myers said in a release. The deal also requires the company’s current Chief Executive Peter Dolan to step down from his post as chairman. Dolan was either president or CEO of Bristol-Myers during most of the time the inventory irregularities took place. The company said its board had elected long-time member James Robinson III to assume the position.
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