The Fraud of Big Pharma
posted Wed, 19 Jan 2011The pharmaceutical industry has surpassed the defense industry to become the biggest defrauder of the U.S. government, according to a recent study by Public Citizen, a highly respected consumer advocacy organization.
The report illustrates Big Pharma’s long history of deceitful and even illegal tactics. The majority of lawsuits filed against the drug companies stemmed from two key types of violations: “overcharging government health programs” and “unlawful promotion” (misleading marketing practices and promoting drugs for off-label use).
According to Public Citizen, the drug industry has paid a whopping $19.81 billion in criminal and civil settlements over the last 20 years. Three-fourths of settlements have occurred in the last 5 years, indicating an alarming upward trend.
Pharma’s underhanded practices are focused on one thing: maintaining hefty profit margins. Four of the biggest drug companies, GlaxoSmithKline, Pfizer, Eli Lilly, and Schering-Plough, were indicated as the worst offenders—paying out on over half of all settlements.
Though settlement dollars are adding up to the billions, that is nothing compared to the overall profits reaped by these giant corporations. Until there are genuine deterrents, the drug industry will continue to swindle taxpayers and mislead consumers.
Melissa Maki, RxRights
Read the Public Citizen press release