Tuesday, September 12, 2006

USA Attends Special Board Meeting at Bistol Myers

The Wall Street Jrl here reports of the special board meeting at Bristol Myers. This was clearly an important meeting as CEO Peter Dolan was "ousted."  But one sentence  of the Wall Street Jrl article is fascinating.    It says, "[t]he meeting was attended by the U.S. Attorney for New Jersey, Christopher Christie, who appointed Mr. Lacey last year in the settlement agreement." Lacey is former federal Judge Frederick B. Lacey, who serves as the monitor.

Now let me see if I understand this correctly -

The USA is personally attending a meeting of the company, and the CEO was "ousted" at this meeting. The Bristol -Myers agreement does state in paragraph 22 that:

"Within thirty (30) days of the execution of this Agreement, BMS agrees to call a meeting, on a date mutually agreed upon by BMS and the Office, of its senior executives and any senior financial personnel, and any other BMS employees who the Company desires to attend, such meeting to be attended by the United States Attorney and other representatives of the Office for the purpose of communicating the goals and expected effect of this Agreement."

Is Christie advising the company?  Is he there to oversee the monitor appointed?  Does his appearance place undue pressure on the company? Keep in mind that any breach of the agreement is determined by the DOJ Office.  As stated in paragraph 37 of the agreement - "The parties further understand and agree that the determination whether BMS has breached this Agreement rests solely in the discretion of the Office, and the exercise of discretion by the Office under this paragraph is not subject to review in any court or tribunal outside the Department of Justice."



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