Nov. 5 - SAC Capital and J&J have agreed to pay a combined $4 billion to resolve unrelated U.S. probes. Breakingviews columnists discuss the price of doing business.
The big haul for the government yesterday -- SEC paying about one point eight billion dollars. -- Johnson & Johnson paying even more 2.2 billion dollars start with the SEC. Ran. We've got a company. But apparently no individual out of. -- like big money. Gonna be out of business. Pleads guilty to find felony counts. And so I mean you know I ought to have a big case obviously they've got a big penalty you know no big surprises we've been here about this for a while. On -- the individual and everyone is concerned about -- course is Steve Cohen and he is still out there. Cleared not cleared but not in search doesn't look like they're gonna -- -- -- -- atrocities and I want to have -- two trials coming up it is as a portfolio managers -- could be stuff going on trial that could help prosecutors. We don't know yet. It's not clear yet but so far they've failed to get the big question. This right now and as in the case Johnson & Johnson drop they they didn't really nail in the individuals curiously enough but there were some. Wrinkles and at that actually were pretty good Kelly what they did is so Johnson Johnson did 2.2 billion because a couple of their drugs they market illegally for instance they give kickbacks in nursing homes if if they gave. These drugs to patients couldn't. It didn't benefit them actually public -- -- a cut and what the government that is they finally finally came down that Vick signed a consent agreement with the company in which they're going to they get that they have claw -- from executives in charge. Which is interesting because the had to change game was the head of marketing war this program during the during the ninety's when -- -- so they -- aggressive taking a vacation I don't know if financial Playboy -- -- -- -- -- that they've -- options -- that. Thinking what an interesting thing here -- ports that they see we're talking about insider trading and using information that is not supposed to be used for training. You know some people question whether that is a real harm to the market individuals. This case change I mean bosnians. And it's real harm me or is any drug carries a risk and and you know things they kept the marketing the company kept apart includes seniors. And the FDA eventually came out that look this drug doesn't work and seniors in the -- -- -- -- -- -- that we think are reaping good. So there was actual you know people were being heart. -- -- big chunk out of his pocket books -- you know sounds like maybe the CEO of ginger also gave -- a little bit on the financial side if the board acts that way but. Ultimately we don't see that the prosecutions against these top individuals and that's where people -- not just that the bank which is where there's been a lot of consternation but it. And in these companies as well as there -- there's -- there's no it. It's it's costing this certificate speeding ticket for at least for pharma companies -- changes sold about twenty over twenty billion worth of this drug. The penalties 2.2 billion I suspect strongly it's somewhere there was more -- Very good team trying to figure out -- let's not forget I mean -- it's our trade him or upwards of seventy people have pleaded guilty. But -- substantial number on -- jail. It's a Steve -- were talking about here it's apartment able to do. Sort of deploy a rule that so I mean that's a lot of criminals you know a lot of criminal activity in the country area. This is just it's still -- Nazis the case where -- we will leave it there I'm sure we'll see more penalties elsewhere in no time and will be back with more Britain use tomorrow.