Wednesday, June 15, 2005
Bristol-Myers Squibb Agrees, 2 Execs Get Indicted, and Seton Hall Gets A Chair
A DOJ News Release reports that:
"Bristol-Myers Squibb Company (BMS) has agreed to pay an additional $300 million in restitution and undertake a series of corporate reforms as part of an agreement with the government to defer prosecution on a charge of conspiring to commit securities fraud for the company's failure to disclose its 'channel-stuffing' activities in 2000 and 2001"
Copy of Deferred Prosecution Agreement here.
Copy of Complaint here.
In the same announcement, however, we see two employees being indicted. In this case "a former senior vice president and chief financial officer" and "former executive vice president" and "president of its Worldwide Medicines Group."
So what kind of deal did the company secure? The deferred prosecution agreement includes usual terms like an agreement to:
"Cooperate fully with the U.S. Attorney's Office in its ongoing investigation;"
But it also has some other terms, that may not be as common, namely:
"Requiring BMS to endow a chair at Seton Hall University Law School dedicated to the teaching of business ethics and corporate governance, which position shall include conducting at least one seminar on business ethics and corporate governance annually that members of BMS' executive and management staff may attend, as well as other corporate executives."