Pharma Industry Beware: Arrest of Pharma Executive Sends Strong Message

The pharmaceutical industry took note this fall when federal agents arrested the former president of an Allergan PLC division on charges of conspiring to pay kickbacks to physicians to induce them to prescribe the company's drugs. It is not every day that the Department of Justice (DOJ) prosecutes the leaders of a pharmaceutical company for health care fraud—in fact it almost never happens. In recent years, numerous pharma companies have faced major fines and criminal charges, but until now the target has not been on the back of management.