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THE ROTTEN DAUGHTER DOESN’T FALL FAR FROM THE ROTTEN FATHER: PART TWO (END)

In Bureaucracy, Business, History, Law, Law Enforcement, Medical, Politics, Social commentary on January 13, 2022 at 12:15 am

Mylan Pharmaceuticals CEO Heather Manchin-Bresch is on a roll.  

  • The daughter of United States Senator Joe Manchin (R-West Virginia), she has, since 2004, hiked the price of a life-saving EpiPen from $50 to $600 to $700 for a package of two.
  • Her own salary has steadily risen more than 600% to $18,509,300 a year.
  • The device now accounts for 40% of Mylan’s profits.  

But in playing greed-based games with the lives of millions of Americans, Manchin-Bresch, 52, may have put her company—and even herself—in jeopardy.    

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Heather Manchin-Bresch

EpiPens have been mandatory for public schools in at least 11 states since Congress passed the 2013 School Access to Emergency Epinephrine Act. This occurred after Mylan spent $4 million lobbying Congress.  

When the lives of their children are threatened, adults who can stoically accept the inevitability of their own deaths can become dangerously emotional about the fates of their sons or daughters.

As national news media spread the word of Mylan’s unconscionable price increases, American consumers are making their rage increasingly known.

There are three ways this could be expressed: Political, Legal, and Illegal.  

Political: Minnesota U.S. Senator Amy Klobuchar has called for an official investigation by the Senate Judiciary Committee and the Federal Trade Commission (FTC) into the price hikes:

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Senator Amy Klobuchar

“I write to request the Federal Trade Commission investigate whether Mylan Pharmaceuticals has violated the antitrust laws regarding the sale of its epinephrine auto-injector, EpiPen. Many Americans, including my own daughter, rely on this life-saving product to treat severe allergic reactions.  

“Although the antitrust laws do not prohibit price gouging, regardless of how unseemly it may be, they do prohibit the use of unreasonable restraints of trade to facilitate or protect a price increase.” 

Other Senators who have called for hearings include Iowa’s Charles Grassley, Connecticut’s Richard Blumenthal and former Democratic presidential contender Vermont Senator Bernie Sanders. 

“I have heard from one father in Iowa who recently purchased a refill of his daughter’s EpiPen prescription. He reported that to fill the prescription, he had to pay over $500 for one EpiPen,” wrote Grassley to Manchin-Bresch. “The high cost has also caused some first responders to consider making their own kits with epinephrine vials and syringes.”

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Senator Charles Grassley

“There’s no reason an EpiPen, which costs Mylan just a few dollars to make, should cost families more than $600,” tweeted Sanders on Twitter.

A second expression of political fallout could ultimately be the adoption of a single-payer healthcare system. Under this, a “single-payer” fund, rather than private insurers, pays for healthcare costs. The healthcare delivery system can be private, public or a combination of the two.  

Legal: Individual Americans—and/or the U.S. Department of Justice—could file civil lawsuits against Mylan Pharmaceuticals under the Racketeer Influenced Corrupt Organizations (RICO) Act.  

Passed by Congress in 1970 to combat the Mafia, its provisions include punishments for extortion. This is defined as “a criminal offense which occurs when a person unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion.”  

It could be argued that, by holding a near-monopoly over a product that millions of Americans depend on for survival, and raising its price beyond the ability of most Americans to afford it, Mylan has engaged in extortionate practices.  

It would not be the first time a David-vs.-Goliath lawsuit prevailed against dismal expectations.  

In 1994, amid great pessimism, Mississippi Attorney General Mike Moore filed a lawsuit against the tobacco industry. But other states soon followed, ultimately growing to 46.  

Their goal: To seek monetary, equitable and injunctive relief under various consumer-protection and anti-trust laws.

The theory underlying these lawsuits: Cigarettes produced by the tobacco industry created health problems among the population, which badly strained the states’ public healthcare systems.

In 1998, the states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related, health-care costs—amounting to millions of dollars. In return, they exempted the companies from private lawsuits for tobacco-related injuries.

Illegal:  At one time, business titans like John D. Rockefeller and Henry Ford lived apart from “the common herd.” Americans read about them in newspapers or heard about them on the radio, but had no way of contacting them directly.  

If you wanted to “dig up dirt” on any of them, you had to be wealthy enough to hire private detectives–who were probably employed by the same people you wanted to investigate.  

But the rise of the Internet—and especially the advent of “people-finder” websites like Instant Checkmate, Intellius and Veromi—has drastically changed all that.  

Type “Heather Manchin-Bresch” into the Intellius “Confidential People Finder” subject line, and—for a $20 month’s subscription—you can obtain “some or all of the following”:  

  • Full Name
  • Age and Date of Birth
  • Address
  • Address History
  • Phone Numbers
  • Aliases
  • Relatives
  • Neighbors
  • Email Address(es)
  • Social Networks
  • Property Records
  • Marriages & Divorces
  • Criminal Records
  • Bankruptcies
  • Liens
  • Judgments
  • Lawsuits

It doesn’t take a genius to see how the parent of an allergy-suffering child—desperate to save his son or daughter and enraged at what he believes to be the extortionately high price of EpiPens—might put such information to use.  

What is truly astonishing is that, in our publicity-saturated culture, greedy, self-destructive “celebrities” like Heather Manchin-Bresch don’t realize this.  

THE ROTTEN DAUGHTER DOESN’T FALL FAR FROM THE ROTTEN FATHER: PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Law Enforcement, Medical, Politics, Social commentary on January 12, 2022 at 12:12 am

More than 500 years ago, Niccolo Machiavelli, the father of modern politics, delivered this sage advice in his political masterwork, The Discourses:

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself.  But time, which has been said to be the father of all truth, does not fail to bring it to light.  

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Niccolo Machiavelli

Unfortunately, it’s advice that members of the United States Congress have blissfully chosen to ignore. By doing so, they have condemned millions of Americans to suffering and death at the hands of greed-based, predatory corporations.  

One of these corporations is Mylan Pharmaceuticals.  

In 2007, Mylan acquired the patent for the EpiPen, a lifesaving device for anyone allergic to common foods like peanuts, shellfish and eggs. Millions of people with life-threatening allergies depend on the EpiPen for survival.  

During an allergy attack, the EpiPen injects an emergency dosage of epinephrine to the user, preventing a possibly fatal reaction, known as anaphylaxis, from occurring. 

Between 2007 and 2015, the wholesale price of an EpiPen skyrocketed from $56.64 to $300 to $645 for an EpiPen 2-Pak—an increase of 461%.

It costs about $8 to make such a pack.

According to NBC News, compensation for Mylan CEO Heather Bresch similarly skyrocketed during the same period: From $2,453,456 in 2007 to $18,931,068 in 2015—a 671% raise in eight years.

Bresch is the daughter of West Virginia United States Senator Joe Manchin—who recently killed the chance for passage of President Joe Biden’s “Build Back Better” bill. Among its benefits: 

  • Universal preschool
  • Free community college
  • Lower prescription drug costs
  • Expanded Medicare and Medicaid services 
  • Requiring utility companies to phase in renewable energy to replace fossil fuels.

Manchin—who owns a yacht and drives a Maserati—suggested that parents would use Child Tax Credits to buy drugs.

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Manchin-Bresch wasn’t the only one to profit at the expense of the most vulnerable. 

Between 2007 and 2015, Mylan’s stock price tripled, going from $13.29 per share in 2007 to a high of $47.59 in 2016. By late August, 2016, Mylan’s stock was hovering around $45.68 per share on the NASDAQ index.

Bloomberg states that the EpiPen now accounts for about 40% of Mylan’s profits. 

Ironically, Sheldon Kaplan, the man who invented the now-famous device, never made a dime off it, and died in obscurity.  

After working at NASA, Kaplan worked for Survival Technology, Inc., in Bethesda, Maryland. 

In 1973, the Defense Department asked him to design a device that could quickly inject an antidote for nerve gas.

Kaplan’s design perfectly fitted this need: When a victim plunged a needle into his thigh, a spring-loaded mechanism shot a needle containing life-saving medicine into his bloodstream. 

Kaplan’s invention became known as the ComboPen, and was initially used by the Pentagon before becoming available for use by the general public several years later as the EpiPen. 

Kaplan left Survival Technology shortly after creating the ComboPen to become a biochemical engineer. He didn’t follow the success of his invention—and didn’t reap any of the huge financial rewards that it has produced.  

That has certainly not been true for Mylan Pharmaceuticals.

After cornering the patent on the EpiPen in 2007, the company has made billions on the life-saving device. 

According to Bloomberg, a package of two EpiPens costs $415 in the United States after insurance discounts. The same package in France–which has price controls under socialized medicine–costs $85.  

The chief beneficiary of this legalized price-gouging has been Mylan’s CEO, Heather Manchini-Bresch.

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Heather Manchin-Bresch

She joined Mylan in 1992 and held various positions within the company.  Among these: Its chief lobbyist before Congress.  

It was in that capacity that she persuaded Congress to enact a bill requiring all public schools to carry EpiPens for students with food allergies. It was signed into law by President Barack Obama in November, 2013.

Over the next three years, schools nationwide bought EpiPens by the truckload. And Mylan jacked up its prices for the EpiPen every other quarter. 

On January 1, 2012, Heather Manchin-Bresch became Mylan’s CEO.

But it wasn’t enough to have a monopoly on a device millions of men, women and children desperately needed. In 2014, true to its “profits-at-any-price” philosophy, Mylan reincorporated in the Netherlands to lower its effective tax rate.

It did so through a corporate accounting trick known as a tax inversion, and thus claiming the status of a foreign-owned corporation although its headquarters remained in Canonsburg, Pennsylvania.

Even her own father, U..S. Senator Joseph Manchin, condemned Mylan’s use of the inversion scheme and said it should be illegal.  

But Manchin-Bresch fiercely defended it in an interview with the New York Times: “You can’t maintain competitiveness by staying at a competitive disadvantage. I mean you just can’t.”

No doubt, with her CEO salary of $18,509,300 a year and moneyed ties to high-powered attorneys and influential members of Congress, Bresch thinks herself invulnerable.

But all that could quickly change—if even a small number of her victims become angry enough.  

JUDGMENT DAY FOR AMERICA’S DEATH-DEALERS: PART THREE (END)

In Bureaucracy, History, Law, Law Enforcement, Military, Politics, Social commentary on March 27, 2019 at 12:13 am

“The victims of the violence are black and white, rich and poor, young and old, famous and unknown. They are, most important of all, human beings whom other human beings loved and needed. No one—no matter where he lives or what he does— can be certain who will suffer from some senseless act of bloodshed. And yet it goes on and on.”

–Robert F. Kennedy, April 4, 1968

Senator Robert F. Kennedy announcing the murder of Dr. Martin Luther King, Jr.

What should the surviving victims of gun massacres do to seek redress?

And how can the relatives and friends of those who didn’t survive seek justice for those they loved?

As far back as 2012, this writer posed those questions. And offered the following solution.

But only now has a court—the Connecticut Supreme Court—made this remedy possible.

First, don’t count on politicians to support a ban on assault weapons.

Politicians—with rare exceptions—have only two goals:

  1. Get elected to office, and
  2. Stay in office.

And too many of them fear the economic and voting clout of the National Rifle Association (NRA) to risk its wrath.

Consider Republican Presidential Nominee Mitt Romney and then-President Barack Obama.

Both rushed to offer condolences to the surviving victims of the massacre at the Century 16 Theater in Aurora, Colorado, on July 20, 2012.

And both steadfastly refused to even discuss gun control—let alone support a ban on the type of assault weapons used by James Holmes, leaving 12 dead and 58 wounded.

Second, those who survived the massacre—and the relatives and friends of those who didn’t—should file wrongful death, class-action lawsuits against the NRA.

There is sound, legal precedent for this.

  • For decades, the American tobacco industry peddled death and disability to millions and reaped billions of dollars in profits.
  • The industry vigorously claimed there was no evidence that smoking caused cancer, heart disease, emphysema or any other ailment.

  • Tobacco companies spent billions on slick advertising campaigns to win new smokers and attack medical warnings about the dangers of smoking.
  • Tobacco companies spent millions to elect compliant politicians and block anti-smoking legislation.
  • From 1954 to 1994, over 800 private lawsuits were filed against tobacco companies in state courts. But only two plaintiffs prevailed, and both of those decisions were reversed on appeal.
  • In 1994, amidst great pessimism, Mississippi Attorney General Mike Moore filed a lawsuit against the tobacco industry. But other states soon followed, ultimately growing to 46.
  • Their goal: To seek monetary, equitable and injunctive relief under various consumer-protection and anti-trust laws.
  • The theory underlying these lawsuits was: Cigarettes produced by the tobacco industry created health problems among the population, which badly strained the states’ public healthcare systems.
  • In 1998, the states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related, health-care costs. In return, they exempted the companies from private lawsuits for tobacco-related injuries.
  • The companies agreed to curtail or cease certain marketing practices. They also agreed to pay, forever, annual payments to the states to compensate some of the medical costs for patients with smoking-related illnesses.

The parallels with the NRA are obvious:

  • For decades, the NRA has peddled deadly weapons to millions, reaped billions of dollars in profits and refused to admit the carnage those weapons have produced: “Guns don’t kill people.  People kill people.”  With guns.

  • The NRA has bitterly fought background checks on gun-buyers, in effect granting even criminals and the mentally ill the right to own arsenals of death-dealing weaponry.
  • The NRA has spent millions on slick advertising campaigns to win new members and frighten them into buying guns.

  • The NRA has spent millions on political contributions to block gun-control legislation.
  • The NRA has spent millions attacking political candidates and elected officials who warned about the dangers of unrestricted access to assault and/or concealed weapons.

  • The NRA has spent millions pushing “Stand Your Ground” laws in more than half the states, which potentially give every citizen a “license to kill.”
  • The NRA receives millions of dollars from online sales of ammunition, high-capacity ammunition magazines, and other accessories through its point-of-sale Round-Up Program—thus directly profiting by selling a product that kills about 30,288 people a year.

  • Firearms made indiscriminately available through NRA lobbying have filled hospitals with casualties, and have thus badly strained the states’ public healthcare systems.

It will take a series of highly expensive and well-publicized lawsuits to significantly weaken the NRA, financially and politically.

The first ones will have to be brought by the surviving victims of gun violence—and by the friends and families of those who did not survive it. Only they will have the courage and motivation to take such a risk.

As with the cases first brought against tobacco companies, there will be losses.  And the NRA will rejoice with each one.

But, in time, state Attorneys General will see the clear parallels between lawsuits filed against those who peddle death by cigarette and those who peddle death by armor-piercing bullet.

And then the NRA—like the tobacco industry—will face an adversary wealthy enough to stand up for the rights of the gun industry’s own victims.

Only then will those politicians supporting reasonable gun controls dare to stand up for the victims of these needless tragedies.

JUDGMENT DAY FOR AMERICA’S DEATH-DEALERS: PART TWO (OF THREE)

In Bureaucracy, History, Law, Military, Politics, Social commentary on March 26, 2019 at 12:11 am

Weapons manufacturers are the only companies in the United States that cannot be sued for the deaths and injuries their products cause.

This is because The Protection of Lawful Commerce in Arms Act, or PLCAA, immunizes the American firearms industry against lawsuits by victims of mass shootings and gun violence.

Rammed through a Republican-dominated Congress in 2005 by the National Rifle Association (NRA), it was signed into law by President George W. Bush. 

But on March 15, 2019, the Supreme Court of Connecticut ruled that families of schoolchildren gunned down in the 2012 Sandy Hook Elementary School massacre could sue Remington Outdoor Co Inc., over its marketing of military-style Bushmaster weapons to civilians.

The Court ruled that the victims’ families had the right to sue Remington under the Connecticut Unfair Trade Practices Act (CUTPA).

Among the ads that Remington ran to promote its military-style AR-15 Bushmaster rifle: 

  • “Truly the most versatile and adaptive rifle ever conceived, it was born of a collaborative effort between Bushmaster, Magpul and Remington to create the ultimate military combat weapons system.”
  • A photo of a Bushmaster with its barrel facing the reader, with the caption: “CONSIDER YOUR MAN CARD REISSUED.” 
  • A photo of a Bushmaster, alongside the slogan: “Forces of opposition, bow down. You are single-handedly outnumbered.”
  • “ONE RIFLE. MANY MISSIONS. THE REVOLUTIONARY, FULLY MODULAR REMINGTON ACR (ADAPTIVE COMBAT RIFLE).”

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Remington AR-15 Bushmaster

“The defendants knowingly marketed, advertised, and promoted the XM15-E2S for civilians to use to carry out offensive, military style combat missions against their perceived enemies,” alleges the Newtown lawsuit.

And the Justices ruled that, “such use of the XM15-E2S, or any weapon for that matter, would be illegal, and Connecticut law does not permit advertisements that promote or encourage violent, criminal behavior.

“We are confident… that, if there were credible allegations that a firearms seller had run explicit advertisements depicting and glorifying school shootings, and promoted its products in video games, such as ‘School Shooting,’ that glorify and reward such unlawful conduct, and if a troubled young man who watched those advertisements and played those games were inspired thereby to commit a terrible crime like the ones involved in the Sandy Hook massacre, then even the most ardent sponsors of PLCAA would not have wanted to bar a consumer protection lawsuit seeking to hold the supplier accountable for the injuries wrought by such unscrupulous marketing practices.”

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Connecticut Supreme Court Building

Said David Wheeler, father of a Sandy Hook victim: “There is a reason why this particular consumer product is the one that is used by people who want to inflict the most damage, and we have seen it time and time again since my son and his classmates were killed. That reason very likely potentially resides in the documents that we have been unable to look at until now.”

“The families’ goal has always been to shed light on Remington’s calculated and profit-driven strategy to expand the AR-15 market and court high-risk users, all at the expense of Americans’ safety,” said Josh Koskoff, one of the lawyers for the victims’ families, “Today’s decision is a critical step toward achieving that goal.” 

“This is a landmark and potentially historic ruling,” said Adam Winkler, a UCLA Law School professor who specializes in constitutional law. “While all this decision does is allow a case to go forward, in broader terms it really opens up a new avenue for holding gunmakers responsible.”

More importantly, the ruling could spur similar suits in other states. “This could prompt further such suits not only for cases of mass shootings, but individual ones as well,” Winkler said.

The decision by the Connecticut Supreme Court wasn’t unanimous. Three of its seven justices dissented.

The case now goes back to the lower court for further proceedings and a possible trial.

Opinion remains divided over its chances for success.

According to National Public Radio: “The suit is a high-stakes challenge to gun companies, which have rarely been held liable for crimes committed with their products, and could mark a new front in the battle over gun regulations and corporate accountability.

“An eventual ruling against Remington could establish legal precedent, opening doors for more lawsuits against gun manufacturers, and expose the company’s communications about its marketing plans.” 

Noted The Root: “While federal judges remain split on which laws apply to firearm manufacturers, Connecticut judges have drawn a line in the sand. While U.S. Supreme Court intervention on behalf of Remington is a distinct possibility, Connecticut’s decision could inspire lawmakers and lawyers to take a hard look at PLCAA.”  

“The larger implications of this are that the Connecticut Supreme Court has just blown a giant hole in the PLCAA and in federal immunity for firearms manufacturers,” said Timothy Lytton, a law professor at Georgia State University.

Lytton predicted that the United States Supreme Court would be likely to take up the case: “What we’re talking about here is the interpretation of a federal statute and that falls squarely in the jurisdiction of the [United States] Supreme Court.”

A spokeswoman for the National Rifle Association declined to comment. 

JUDGMENT DAY FOR AMERICA’S DEATH-DEALERS: PART ONE (OF THREE)

In Bureaucracy, History, Law, Law Enforcement, Military, Politics, Social commentary on March 25, 2019 at 1:38 am

It had happened before—all too often before:

  • Midnight vigils for the victims of yet another spree-killer.
  • Makeshift memorials of flowers, candles and teddy bears.
  • Grief counselors for students at elementary, junior high and high schools.
  • And, of course, the inevitable question: “Why?”

Americans had seen it all before—too many times before: 

  • After the San Ysidro McDonald’s shootings, 1984: 21 dead, 19 wounded.
  • After the 101 California Street shootings in San Francisco, 1993: 9 dead, 6 injured.
  • After the Columbine High School shootings in Colorado, 1999: 15 dead, 21 wounded.
  • After the Virginia Tech shootings, 2007: 32 dead, 23 wounded.
  • After the Tucson shooting of Rep. Gabrielle Giffords, 2011: 6 dead, 13 wounded.
  • After the massacre at the Century 16 Theater in Aurora, Colorado, 2012: 12 dead, 58 wounded.

And then, on December 14, 2012, Adam Lanza, a mentally unstable, 20-year-old gunman, shot and killed his sleeping mother, Nancy, as she lay in bed at home.

Then he drove his mother’s car to Sandy Hook Elementary School, in Newtown, Connecticut, and slaughtered 20 school children aged six and seven and six adult staff. 

His weapon of choice: A Remington AR-15 Bushmaster rifle, a semi-automatic civilian version of the U.S. military’s M-16.

A fanatical gun collector, Nancy Lanza had turned the house she shared with her son into a virtual arsenal:

  • Izhmash Saiga 12-gauge semiautomatic shotgun
  • Bushmaster Model XM15-E2S .223-caliber semiautomatic rifle
  • Glock 20 10mm semiautomatic handgun
  • Sig Sauer P226 9mm semiautomatic handgun 
  • Savage Mark II bolt-action .22-caliber rifle
  • Enfield Albian bolt-action .323-caliber rifle
  • Volcanic .22-caliber starter pistol. 

Of the firearms listed above, Lanza used the first four (italicized) to carry out the Sandy Hook massacre.  

Stockpiles of ammunition for all of these weapons were later found by police as they searched the house. 

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Adam Lanza

Yet Adam Lanza’s mentally unbalanced condition should have barred him from possessing even a single firearm.

A report issued by the Office of the Child Advocate in November, 2014, noted that Lanza had Asperger’s syndrome. As a teenager he had suffered from anxiety, depression and obsessive-compulsive disorder.

The report concluded: “His severe and deteriorating internalized mental health problems…. combined with an atypical preoccupation with violence….(and) access to deadly weapons…. proved a recipe for mass murder.”

On the day of the massacre, Adam Lanza chose his firearms with care. 

He shot his defenseless mother four times in the head with a Savage Mark II .22-caliber rifle, a bolt-action firearm that can accept a 10-round magazine. But for his planned massacre at Sandy Hook, he chose semiautomatic weapons with detachable ammunition magazines. 

Of all the weapons Lanza carried to Sandy Hook, the Bushmaster XM15-E2S proved the most lethal: A semiautomatic rifle that can be equipped with 30-round magazines, which allows the shooter to cut down on the number of times he has to reload.

In the past, countless Americans had responded to the latest gun outrage with “sending thoughts and prayers.” 

But, this time, there would be a different response to this latest slaughter.

In February, 2014, nine families of the victims in the Sandy Hook massacre filed a lawsuit against the gun manufacturer, Remington Outdoor Co Inc., over its marketing of military-style Bushmaster weapons. 

In October, 2016, the Connecticut Superior Court dismissed the case based on a federal law that protects the gun industry from liability.

Rammed through a Republican-dominated Congress by the National Rifle Association (NRA), the Protection of Lawful Commerce in Arms Act, or PLCAA, was signed into law by President George W. Bush in 2005. Since then, it has armed the American firearms industry with immunity against lawsuits by victims of mass shootings and gun violence.

But on March 15, 2019, the Connecticut Supreme Court ruled that families of Sandy Hook victims could sue Remington Outdoor Co Inc.

The families asserted that Remington, along with a gun wholesaler and local retailer, were partially responsible for the carnage because they marketed the weapon based on its militaristic appeal.

For the first time in American history, victims of gun violence have won the legal right to hold gun makers accountable for the devastation caused by their products.

“The perception for the gun industry is: ‘We can’t get sued,’” said Josh Koskoff, a Connecticut attorney representing families of the Newtown massacre. “‘We can be as unethical and as wild and aggressive in the marketing as we want.’”

The families had sued Remington by citing the legal doctrine of negligent entrustment. This has been used in such cases as when someone lends a car to a high-risk driver who then causes an accident.

But the Supreme Court rejected that theory. Instead, it ruled that the families could bring their claims under the consumer protection statute. 

The court said that state unfair-trade-practices law allows anyone who’s suffered a financial loss from such activities to sue “regardless of whether they had a business relationship with the person or entity that engaged in the prohibited practice.”

“Once we accept the premise that Congress did not intend to immunize firearms suppliers who engage in truly unethical and irresponsible marketing practices promoting criminal conduct … it falls to a jury to decide whether the promotional schemes alleged in the present case rise to the level of illegal trade practices and whether fault for the tragedy can be laid at their feet,” the judges said.

BRINGING JUSTICE TO CEOs: (CORRUPT, EGOTISTICAL OLIGARCHS): PART TWO (END)

In Bureaucracy, Business, History, Law, Law Enforcement, Medical, Politics, Social commentary on August 30, 2016 at 12:25 am

Mylan Pharmaceuticals CEO Heather Bresch is on a roll.  

  • Since 2004, she has hiked the price of a life-saving EpiPen from $50 to $300–or $600 for a package of two.
  • She has seen her own salary steadily rise more than 600% to a current total of $18 million a year.
  • The device now accounts for 40% of Mylan’s profits.  

But in playing greed-based games with the lives of millions of Americans, Bresch, 47, may have put her company–and even herself–in jeopardy.  

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Heather Bresch

EpiPens have been mandatory for public schools in at least 11 states since Congress passed the 2013 School Access to Emergency Epinephrine Act. This occurred after Mylan spent $4 million lobbying Congress.  

When the lives of their children are threatened, adults who can stoically accept the inevitability of their own deaths can become dangerously emotional about the fates of their sons or daughters.

As national news media spread the word of Mylan’s unconscionable price increases, American consumers are making their rage increasingly known.

There are three ways this could be expressed: Political, Legal, and Illegal.  

Political: Minnesota U.S. Senator Amy Klobuchar has called for an official investigation by the Senate Judiciary Committee and the Federal Trade Commission (FTC) into the price hike:

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Senator Amy Klobuchar

“I write to request the Federal Trade Commission investigate whether Mylan Pharmaceuticals has violated the antitrust laws regarding the sale of its epinephrine auto-injector, EpiPen. Many Americans, including my own daughter, rely on this life-saving product to treat severe allergic reactions.  

“Although the antitrust laws do not prohibit price gouging, regardless of how unseemly it may be, they do prohibit the use of unreasonable restraints of trade to facilitate or protect a price increase.” 

Other Senators who have called for hearings include Iowa’s Charles Grassley, Connecticut’s Richard Blumenthal and former Democratic presidential contender Vermont Senator Bernie Sanders. 

“I have heard from one father in Iowa who recently purchased a refill of his daughter’s EpiPen prescription. He reported that to fill the prescription, he had to pay over $500 for one EpiPen,” wrote Grassley to Bresch. “The high cost has also caused some first responders to consider making their own kits with epinephrine vials and syringes.”

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Senator Charles Grassley

“There’s no reason an EpiPen, which costs Mylan just a few dollars to make, should cost families more than $600,” tweeted Sanders on Twitter.

A second expression of political fallout could ultimately be the adoption of a single-payer healthcare system. Under this, a “single-payer” fund, rather than private insurers, pays for healthcare costs. The healthcare delivery system can be private, public or a combination of the two.  

Owing to the belief of millions of Right-wing Americans that such a system is “Communistic,” this is unlikely to be adopted within the foreseeable future.  

Legal: Individual Americans–and/or the U.S. Department of Justice–could file civil lawsuits against Mylan Pharmaceuticals under the Racketeer Influenced Corrupt Organizations (RICO) Act.  

Passed by Congress in 1970 to combat the Mafia, its provisions include punishments for extortion. This is defined as “a criminal offense which occurs when a person unlawfully obtains either money, property or services from a person(s), entity, or institution, through coercion.”  

It could be argued that, by holding a near-monopoly over a product that millions of Americans depend on for survival, and raising its price beyond the ability of most Americans to afford it, Mylan has engaged in extortionate practices.  

It would not be the first time a David-vs.-Goliath lawsuit prevailed against dismal expectations.  

In 1994, amid great pessimism, Mississippi Attorney General Mike Moore filed a lawsuit against the tobacco industry. But other states soon followed, ultimately growing to 46.  

Their goal: To seek monetary, equitable and injunctive relief under various consumer-protection and anti-trust laws.

The theory underlying these lawsuits: Cigarettes produced by the tobacco industry created health problems among the population, which badly strained the states’ public healthcare systems.

In 1998, the states settled their Medicaid lawsuits against the tobacco industry for recovery of their tobacco-related, health-care costs–amounting to millions of dollars. In return, they exempted the companies from private lawsuits for tobacco-related injuries.

Illegal:  At one time, business titans like John D. Rockefeller and Henry Ford lived apart from “the common herd.” Americans read about them in newspapers or heard about them on the radio, but had no way of contacting them directly.  

If you wanted to “dig up dirt” on any of them, you had to be wealthy enough to hire private detectives–who were probably employed by the same people you wanted to investigate.  

But the rise of the Internet–and especially the advent of “people-finder” websites like Instant Checkmate, Intellius and Veromi–has drastically changed all that.  

Type “Heather Bresch” into the Intellius “Confidential People Finder” subject line, and–for a $20 month’s subscription–you can obtain “some or all of the following”:  

  • Full Name
  • Age and Date of Birth
  • Address
  • Address History
  • Phone Numbers
  • Aliases
  • Relatives
  • Neighbors
  • Email Address(es)
  • Social Networks
  • Property Records
  • Marriages & Divorce
  • Criminal Records
  • Bankruptcies
  • Liens
  • Judgments
  • Lawsuits

It doesn’t take a genius to see how the parent of an allergy-suffering child–desperate to save his son or daughter and enraged at what he believes to be the extortionately high price of EpiPens–might put such information to use.  

What is truly astonishing is that, in our publicity-saturated culture, greedy, self-destructive “celebrities” like Heather Bresch don’t realize this.  

BRINGING JUSTICE TO CEOs (CORRUPT EGOTISTICAL OLIGARCHS): PART ONE (OF TWO)

In Bureaucracy, Business, History, Law, Law Enforcement, Medical, Politics, Social commentary on August 29, 2016 at 1:04 am

More than 500 years ago, Niccolo Machiavelli, the father of modern politics, delivered this sage advice in his political masterwork, The Discourses:

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it. 

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself.  But time, which has been said to be the father of all truth, does not fail to bring it to light.  

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Niccolo Machiavelli

Unfortunately, it’s advice that members of the United States Congress have blissfully chosen to ignore. And, in doing so, they have condemned millions of Americans to suffering and death at the hands of greed-based, predatory corporations.  

One of these corporations is Mylan Pharmaceuticals.  

In 2007, Mylan acquired the patent for the EpiPen, a lifesaving device for anyone allergic to common foods like peanuts, shellfish and eggs. Millions of people with life-threatening allergies depend on the EpiPen for survival.  

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During an allergy attack, the EpiPen injects an emergency dosage of epinephrine to the user, preventing a possibly fatal reaction, known as anaphylaxis, from occurring. 

Between 2007 and 2015, the wholesale price of an EpiPen skyrocketed from $56.64 to $317.82–an increase of 461%. 

According to NBC News, compensation for Mylan CEO Heather Bresch similarly skyrocketed during the same period: From $2,453,456 in 2007 to $18,931,068 in 2015–a 671% raise in eight years. 

Bresch wasn’t the only one to profit at the expense of the most vulnerable. 

Mylan’s president, Rajiv Malik, got an 11% pay increase to $1 million annually by 2015.  And Mylan Chief Commercial Officer Anthony Mauro got a 13.6% raise, amounting to $625,000 per year. 

Between 2007 and 2015, Mylan’s stock price tripled, going from $13.29 per share in 2007 to a high of $47.59 in 2016. By late August, 2016, Mylan’s stock is hovering around $45.68 per share on the NASDAQ index.

Bloomberg states that the EpiPen now accounts for about 40% of Mylan’s profits. 

Ironically, Sheldon Kaplan, the man who invented the now-famous device, never made a dime off it, and died in obscurity.  

After working at NASA, Kaplan worked for Survival Technology, Inc., in Bethesda, Maryland. His assignment: Create a device to quickly inject a victim of anaphylaxis–a potentially fatal allergic reaction–with an emergency dose of epinephrine. 

In 1973, when Kaplan was finalizing the design concept for what would ultimately become the EpiPen, the Defense Department asked him to take on a new assignment. The military needed a device that could quickly inject an antidote for nerve gas.

Kaplan’s design perfectly fitted this need: When a victim plunged a needle into his thigh, a spring-loaded mechanism shot a needle containing life-saving medicine into his bloodstream. 

Kaplan’s invention became known as the ComboPen, and was initially used by the Pentagon before becoming available for use by the general public several years later as the EpiPen. 

Kaplan left Survival Technology shortly after creating the ComboPen to become a biochemical engineer. He didn’t follow the success of his invention–and didn’t reap any of the huge financial rewards that it has produced.  

That has certainly not been true for Mylan Pharmaceuticals.

After cornering the patent on the EpiPen in 2007, the company has made billions on the life-saving device. 

According to Bloomberg, a package of two EpiPens costs $415 in the United States after insurance discounts. The same package in France–which has price controls under socialized medicine–costs $85.  

The chief beneficiary of this legalized price-gouging has been Mylan’s CEO, Heather Bresch.

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Heather Bresch

The daughter of U..S. Senator Joseph Manchin (D-WV), she joined Mylan in 1992 and held various positions within the company.  Among these: Its chief lobbyist before Congress.  

It was in that capacity that she persuaded Congress to enact a bill requiring all public schools to carry EpiPens for students with food allergies. It was signed into law by President Barack Obama in November, 2013.

Over the next three years, schools nationwide bought EpiPens by the truckload. And Mylan jacked up its prices for the EpiPen every other quarter. 

On January 1, 2012, Heather Bresch became Mylan’s CEO.

But it wasn’t enough to have a monopoly on a device millions of men, women and children desperately needed. In 2014, true to its “profits-at-any-price” philosophy, Mylan reincorporated in the Netherlands to lower its effective tax rate.

It did so through a corporate accounting trick known as a tax inversion, and thus claiming the status of a foreign-owned corporation although its headquarters remained in Canonsburg, Pennsylvania.

Even her own father, U..S. Senator Joseph Manchin, condemned Mylan’s use of the inversion scheme and said it should be illegal.  

But Bresch fiercely defended it in an interview with the New York Times: “You can’t maintain competitiveness by staying at a competitive disadvantage. I mean you just can’t.”

No doubt, with her $18 million-a-year CEO salary and moneyed ties to high-powered attorneys and influential members of Congress, Bresch thinks herself invulnerable.

But all that could quickly change–if even a small number of her victims become angry enough.  

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