Corporate Corruption News StoriesExcerpts of Key Corporate Corruption News Stories in Major Media
Note: This comprehensive list of corporate corruption news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.
It's rare to get a glimpse behind the curtain of pharmaceutical marketing. CBC [has] learned about a stealth marketing campaign involving a drug company, a well-known Canadian comedian, a doctor and a public relations firm. "Cathy Jones of This Hour Has 22 Minutes is on a mission to get women to start talking about female sexual health after menopause - and particularly, their vaginas," wrote PR company GCI Group in a press release, offering to arrange an interview. But nowhere did it say this "mission" was initiated and sponsored by Novo Nordisk Canada Inc., which makes a vaginal hormone pill. Nor did GCI's release specify that Jones was paid to give media interviews about vaginal atrophy. When CBC asked if there was a drug company involved, the PR firm said yes, Novo Nordisk, but that was to be kept secret. "No parties including GCI want any mention of the drug or drug company," CBC was told. "It's an unbranded campaign." In other words, it's marketing that looks like any other lifestyle article in news. This is what it looks like on the Globe and Mail's website. There was originally no mention of Novo Nordisk sponsoring the campaign. Is it OK for a drug company, behind a curtain, to generate news about a condition and then encourage women to see their doctor? "No, it is not OK," says Dr. Jerilynn Prior [with] the University of British Columbia. "It is misrepresenting the marketing purpose behind it." This is a rare public example of something that happens all the time.
In his 93 years, Bob Wallace has seen some product-pricing doozies over the decades, but the nonstop national furor over the stratospheric price hikes for EpiPens - now retailing above $700 for a two-pack - was the final shot. Wallace and Roland Krevitt, a veteran Scotts Valley manufacturing and tooling consultant, set out to demystify the cost to produce the EpiPen, piece by piece. The auto-injector delivers a lifesaving dose of adrenaline to treat serious allergic reactions to everything from bee stings to food. [They crunched] the costs for molding and manufacturing the nozzle, needle, syringe, springs, safety cap - and 0.3 mg of epinephrine. Their startling estimate of the cost for a two-pack of EpiPens: $8.02. And that even included the bright-yellow box. The pharmaceutical giant Mylan is the latest drugmaker to withstand a public lashing over skyrocketing drug prices. While politicians and patients demand explanations ... policy experts and drug makers blame an American health care system built on an ever-expanding pool of middlemen whose piece of the action is driving up the final bill. [Mylan’s] chief executive, Heather Bresch, recently told a congressional committee her company pays $69 per two-pack to the firm that actually manufactures the EpiPen, [and] pointed to charts explaining why the company charges a $608 wholesale price for a two-pack. The Wall Street Journal ... reported last week that Mylan low-balled its calculation of EpiPen profits to Congress.
A division of the pharmaceutical company Bayer sold millions of dollars of blood-clotting medicine for hemophiliacs - medicine that carried a high risk of transmitting AIDS - to Asia and Latin America in the mid-1980's while selling a new, safer product in the West, according to documents obtained by The New York Times. The Bayer unit, Cutter Biological, introduced its safer medicine in late February 1984 as evidence mounted that the earlier version was infecting hemophiliacs with H.I.V. Yet for over a year, the company continued to sell the old medicine overseas, [and] kept making the old medicine for several months more. In Hong Kong and Taiwan alone, more than 100 hemophiliacs got H.I.V. after using Cutter's old medicine. Many have since died. Cutter also continued to sell the older product ... in Malaysia, Singapore, Indonesia, Japan and Argentina. The Cutter documents, which were produced in connection with lawsuits filed by American hemophiliacs, went largely unnoticed until The Times began asking about them. Federal regulators helped keep the overseas sales out of the public eye. When a Hong Kong distributor in late 1984 expressed an interest in the new product, the records show, Cutter asked the distributor to "use up stocks" of the old medicine. Several months later, as hemophiliacs in Hong Kong began testing positive for H.I.V., some local doctors questioned whether Cutter was dumping "AIDS tainted" medicine into less-developed countries.
Note: Watch a three-minute MSNBC report on this decision by Bayer which resulted in thousands being infected with AIDS. For more along these lines, see concise summaries of deeply revealing Big Pharma corruption news articles from reliable major media sources.
Following widespread outrage and a blistering Senate Banking Committee hearing last week, Wells Fargo CEO John Stumpf has said he’ll forfeit his outstanding stock awards of about $41 million. Wells Fargo’s former retail-banking head, Carrie Tolstedt, has agreed to forfeit outstanding stock awards of about $19 million. The givebacks are being done in response to charges that the bank opened some 2 million fraudulent deposit and credit card accounts in its customers’ names. Wells Fargo had already agreed to pay $185 million to settle those charges with regulators, but, clearly, that wasn’t enough. The public is worn out by Wall Street’s bad behavior - and it’s also tired of watching low-level employees be scapegoated while top executives get off scot-free. Wells had fired more than 5,000 employees connected to the illegal sales practices, but done nothing to punish senior executives. No one is buying the story that a scandal this large was the work of rogue employees at the bottom of the totem pole. Part of the reason for the alleged unauthorized accounts was employees were pressured to meet unachievable sales goals. Wells has also pledged to end the controversial sales goal program for employees in the retail banking division. The financial meltdown of 2008 ... resulted out of extreme complexity - most politicians and citizens can’t parse a credit default swap. Opening a bank account in someone else’s name without their permission, however, is a wrong that everyone can understand.
Note: For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.
UCSF researchers believe they have uncovered a decades-old effort by the sugar industry to exonerate sugar as a dietary culprit for heart disease and shift the blame onto fat and cholesterol. In a paper published in Monday’s JAMA Internal Medicine, the researchers reveal a scheme in which the sugar industry’s main trade group paid two Harvard scientists to conduct a literature review in the mid-1960s that challenged emerging evidence linking sugar consumption to risk factors for cardiovascular disease. The Harvard scientists concluded there was “no doubt” that reducing dietary cholesterol and substituting polyunsaturated fat for saturated fat would prevent heart disease. Such recommendations helped persuade Americans to replace their butter with margarine and eat fat-free cookies and other sugar-laden treats. “We have been indoctrinated in this belief that if we don’t eat a low-fat diet, we’ll die of the No. 1 killer disease,” said co-author Laura Schmidt, professor of health policy at UCSF School of Medicine. “Now we’ve learned the sugar industry paid off Harvard to tell us that.” They showed that the Sugar Research Foundation, which is now known as the Sugar Association, paid Fredrick Stare and fellow faculty member D. Mark Hegsted the equivalent of about $50,000 in 2016 dollars to write a heavily critical review of studies that linked sucrose to heart disease. Their reviews were published in the prestigious New England Journal of Medicine in 1967.
Note: For more on how the sugar industry conspired against public health, see this Time magazine article. For even more along these lines, see concise summaries of deeply revealing health news articles from reliable major media sources. Then explore the excellent, reliable resources provided in our Health Information Center.
The pervasive influence of corporate cash in the democratic process, and the extraordinary lengths to which politicians, lobbyists and even judges go to solicit money, are laid bare in sealed court documents leaked to the Guardian. The John Doe files amount to 1,500 pages of largely unseen material gathered in evidence by prosecutors investigating alleged irregularities in political fundraising. Last year the Wisconsin supreme court ordered that all the documents should be destroyed, though a set survived that has now been obtained by the news organisation. The files open a window on a world that is very rarely glimpsed by the public, in which millions of dollars are secretly donated by major corporations and super-wealthy individuals to third-party groups in an attempt to sway elections. Five Wisconsin prosecutors carried out a deep investigation into what they suspected were criminal campaign-finance violations by the campaign committee of Scott Walker, Wisconsin governor. In 2015, Justice Prosser refused to recuse himself from a case in which the state supreme court sat in judgment over the John Doe investigation, despite the fact that the investigation focused on precisely the same network of lobbying groups and donors that had helped him hang onto his seat. The judge joined a majority of four conservative justices who voted to terminate the investigation and destroy all the documents now leaked to the Guardian.
Like a lot of other Americans, Sen. Elizabeth Warren wants to know why the Department of Justice hasn’t criminally prosecuted any of the major players responsible for the 2008 financial crisis. On Thursday, Warren released two highly provocative letters demanding some explanations. One is to DOJ Inspector General Michael Horowitz, requesting a review of how federal law enforcement managed to whiff on all 11 substantive criminal referrals submitted by the Financial Crisis Inquiry Commission (FCIC), a panel set up to examine the causes of the 2008 meltdown. The other is to FBI Director James Comey, asking him to release all FBI investigations and deliberations related to those referrals. The FCIC’s criminal referrals ... have never been made public. But Warren’s staff reviewed thousands of other documents released in March ... and found descriptions and records of them. They detail potential violations of securities laws by 14 different financial institutions: most of America’s largest banks. And the FCIC named names, specifying nine top-level executives who should be investigated on criminal charges: CEO Daniel Mudd and CFO Stephen Swad of Fannie Mae; CEO Martin Sullivan and CFO Stephen Bensinger of AIG; CEO Stan O’Neal and CFO Jeffrey Edwards of Merrill Lynch; and CEO Chuck Prince, CFO Gary Crittenden, and Board Chairman Robert Rubin of Citigroup. None of the 14 financial firms listed in the referrals were criminally indicted or brought to trial, Warren writes. Only five of the 14 even paid fines.
Here’s what passes for funny in a room packed full of weapons-industry executives and lobbyists: When Vice Adm. Joseph Rixey — the man in charge of the Pentagon agency that administers foreign arms sales — said “I know you don’t go after human rights violators for potential customers.” The line produced chuckles in the room. Rixey was the guest of honor at a reception Wednesday hosted by the Senate Aerospace Caucus, a group of more than a dozen senators who “work to ensure a strong, secure, and competitive American aerospace sector.” The event ... was cohosted by the Aerospace Industries Association (AIA), the lobbying group for weapons contractors like Lockheed Martin, Boeing, Northrop Grumman, and Raytheon. Rixey is the director of the Defense Security Cooperation Agency (DSCA), the Pentagon agency charged with overseeing the Pentagon’s relations with the militaries of U.S. allies. Over the past year, the DSCA has approved upwards of $47 billion in such contracts, for weapons transfers to countries like Egypt, Israel, and Saudi Arabia. In his own remarks, Rixey lauded the relationship between the DSCA and industry. “We at DSCA are thankful that we have the support of our counterparts within the United States government and with defense industries,” he said. Rixey was joined by caucus co-chairs Sens. Jerry Moran, R-Kan., and Patty Murray, D-Wash., who praised the industry for its role in overseas weapons sales on both foreign policy and economic grounds.
Note: The Pentagon is the only segment of US government that doesn't balance its books, and Pentagon auditors are heavily pressured to look the other way on blatant corruption. For more along these lines, see concise summaries of deeply revealing military corruption news articles from reliable major media sources.
The International Criminal Court (ICC) announced this week that it would start considering cases involving environmental destruction, misuse of land, and land grabs as crimes against humanity. The move reflects a broadening perspective on what constitutes a war crime. This represents a significant shift in strategy at the ICC, which since its 1989 inception has been charged with investigating war crimes and human rights offenses. ICC’s announcement will likely expand the number people who could find themselves prosecuted by the court beyond the usual politicians, military commanders, or rebel leaders who are investigated for violent war crimes. “Company bosses and politicians complicit in violently seizing land, razing tropical forests, or poisoning water sources could soon find themselves standing trial in The Hague alongside war criminals and dictators," said Gillian Caldwell, executive director of the advocacy group Global Witness. 2015 was the deadliest year on record for land-grab victims, with more than three people killed each week in territory conflicts with miners, loggers, hydro-electric dams, or agribusiness firms. "The systemic crimes committed under the guise of ‘development’ are no less damaging to victims than many wartime atrocities," said Richard Rogers, a partner at Global Diligence, in a statement. "The ICC Prosecutor has sent a clear message that such offences may amount to crimes against humanity and can no longer be tolerated.”
Note: For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.
In the 2000 biographical film about a legal clerk who brings a major utility company to its knees for poisoning residents of Hinkley, California, Erin Brockovich ended on a Hollywood high note with a $333m settlement from PG&E. But chromium-6 contamination of America’s drinking water is an ongoing battle the US Environmental Protection Agency (EPA) is losing. Nearly 200 million Americans across all 50 states are exposed to unsafe levels of chromium-6 or hexavalent chromium, a heavy metal known to cause cancer in animals and humans, according to a new report released Tuesday by the nonprofit research and advocacy organization Environmental Working Group (EWG). In their analysis of the EPA’s own data collected for the first nationwide test of chromium-6 contamination in US drinking water, the [EWG] found that 12,000 Americans are at risk of getting cancer. “More than two-thirds of Americans’ drinking water supply has more chromium than the level that California scientists say is safe – a number that’s been confirmed by scientists in both New Jersey and North Carolina,” according to [report co-author Bill] Walker. “Despite this widespread contamination, the US currently has no national drinking water standard for chromium-6.” Erin Brockovich urges Americans to disregard the EPA’s reassurances and to take a more active role in their communities to fix the country’s broken water supply.
Note: US authorities were recently caught systematically distorting water tests to downplay the pollution levels in the US water supply. For more along these lines, see concise summaries of deeply revealing health news articles from reliable major media sources.
A whistleblower suit against Merck, filed back in 2010 by two former employees, [accused] the drugmaker of overstating the effectiveness of its mumps, measles, and rubella vaccine. The scientists claim Merck defrauded the U.S. government by causing it to purchase an estimated four million doses of mislabeled and misbranded MMR vaccine per year for at least a decade, and helped ignite two recent mumps outbreaks that the allegedly ineffective vaccine was intended to prevent in the first place. “As the single largest purchaser of childhood vaccines (accounting for more than 50 percent of all vaccine purchasers), the United States is by far the largest financial victim of Merck’s fraud. Specifically, the suit claims Merck manipulated the results of clinical trials beginning in the late 1990s so as to be able to report that the combined mumps vaccine ... is 95 percent effective, in an effort to maintain its exclusive license to manufacture it. However, instead of reformulating the vaccine whose declining efficacy Merck itself has acknowledged, the company reportedly launched a complicated scheme to adjust its testing technique so that it would yield the desired potency results. While the Justice Department has refused to rule on the case after conducting its own two-year investigation, the allegations ... offer an extremely damaging view into the inner process of a company accused of misleading both regulators and consumers about a vital medical product.
When Wells Fargo was hit last week with $185 million in fines after thousands of its employees were caught setting up fake accounts customers didn't ask for, regulators heralded the settlement as a breakthrough. But the fines being levied against Wells Fargo pale in comparison to the bank's yearly profit - more than $20 billion in 2015. It is also less than the more than $200 million that the stock in the company held by company's chief executive, John G. Stumpf is worth. The fines also are not that much more than the $125 million one of its top executives, Carrie Tolstedt, will walk away with when she retires this year. "There are two possibilities: Customer abuse was part of business model, in which case lots of high ranking people need to go to prison," said Bart Naylor, a financial policy advocate. "Or the bank is too big to manage, and folks high up don’t even know that laws are being broken a few levels down." The magnitude of the fraud described by regulators should be thoroughly investigated, five Democratic lawmakers said in a letter to the head of the Senate Banking Committee, Richard Shelby (R-Ala.), asking for a hearing on the case. The lawmakers, including Sen. Robert Menendez of New Jersey, said Wells Fargo's CEO, John G. Stumpf, should be called to testify. "It is difficult to believe a large-scale, coordinated [scheme] like this took place without knowledge of some higher ups," Menendez said in an interview.
Note: For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.
Wells Fargo fired about 5,300 employees over the past several years for opening more than 2 million checking, savings, credit or debit card accounts without customers’ knowledge or consent. The big question: Why wasn’t Wells Fargo chief executive John Stumpf one of them? “It’s hard to believe that thousands of employees could have created over a million fake accounts without anyone in senior management knowing about it,” Sen. Elizabeth Warren, D-Mass., wrote in an emailed response. “It’s one or the other: Either individuals in senior management knew about this fraud and should be held personally accountable, or they didn’t know about it and a bank as big as Wells Fargo is simply too big to manage.” On Thursday, Wells settled a lawsuit and potential lawsuits by agreeing to clean up the mess, refund fees paid by customers on accounts they did not authorize and pay fines and penalties. Those included $100 million to the Consumer Financial Protection Bureau, $35 million to the Office of the Comptroller of the Currency and $50 million to the city and county of Los Angeles. FBR analyst Paul Miller called those fines “a rounding error” for Wells, which earns about $5 billion per quarter. Los Angeles City Attorney Mike Feuer opened an investigation into Wells after the Los Angeles Times reported in 2013 that ... “employees have opened unneeded accounts for customers, ordered credit cards without customers’ permission and forged client signatures on paperwork." His office filed a lawsuit against Wells Fargo in 2015.
Note: For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.
News that Ketchum Inc., the public relations firm leading the charge to promote chemical-dependent GMO agriculture, is launching a new “specialty group” to capture a slice of the growing organic food market caught many food industry players by surprise last week. Ketchum’s new branch, called “Cultivate,” is pitching itself to “help purpose-driven brands with a natural, organic, and sustainable focus.” The news comes as Ketchum remains a key player in PR efforts to dampen demand for organic foods, spinning messages that tell consumers organics are over-priced and over-hyped. In 2013, Monsanto hired Ketchum’s parent company, Omnicom, to “reshape” its reputation amid fierce opposition to GMOs, according to the Holmes Report. Ketchum now works closely with Monsanto and the agrichemical industry on its massively funded PR efforts to promote genetically engineered food and crops, stop GMO labeling, downplay concerns about pesticides, counteract consumer advocates and convince consumers that organic food is no different from conventional food. A closer look at Ketchum’s past and current activities turns up more reasons that purpose-driven organic and natural food companies might want to steer clear of Ketchum’s “Cultivate” branch. Emails from the late 1990s indicate that Ketchum was involved in espionage against nonprofit groups that were raising concerns about GMOs. Ketchum ... has worked to undermine consumer advocates and the organic foods industry. It would be unwise for organic companies to hire the PR firm.
Companies have added thousands of ingredients to foods with little to no government oversight. That's thanks to a loophole in a decades-old law that allows them to deem an additive to be "generally recognized as safe" - or GRAS - without the U.S. Food and Drug Administration's blessing, or even its knowledge. The loophole was originally intended to allow manufacturers of common ingredients like vinegar and table salt ... to bypass the FDA's lengthy safety-review process. But over time, companies have found that it's far more efficient to take advantage of the exemption to get their products on shelves quickly. Some of these products contain additives that the FDA has found to pose dangers, [and] companies regularly introduce new additives without ever informing the FDA. The Government Accountability Office ... published a report in 2010 that found that "FDA's oversight process does not help ensure the safety of all new GRAS determinations." And even when a company does go through the FDA review process, safety decisions have been criticized. For example ... lawsuits allege that mycoprotein, a type of fungus used in vegetarian products, has caused consumers to suffer a range of reactions, including nausea and anaphylactic shock. The complaints prompted the Center for Science in the Public Interest to urge the FDA in 2011 to revoke the ingredient's GRAS status. In the past five decades, the number of food additives has skyrocketed — from about 800 to more than 10,000.
Note: Common additives in processed foods have been linked with temper tantrums, poor concentration and hyperactivity, and allergic reactions in children. For more along these lines, see concise summaries of deeply revealing news articles on food system corruption and health.
Wells Fargo Bank, one of the nation's largest banks, has been hit with $185 million in civil penalties for secretly opening millions of unauthorized deposit and credit card accounts that harmed customers, federal and state officials said Thursday. Employees of Wells Fargo (WFC) boosted sales figures by covertly opening the accounts and funding them by transferring money from customers' authorized accounts without permission, the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and Los Angeles city officials said. An analysis by the San Francisco-headquartered bank found that its employees opened more than two million deposit and credit card accounts that may not have been authorized by consumers. Many of the transfers ran up fees or other charges for the customers, even as they helped employees make incentive goals. The bank agreed to pay full restitution to all victims and a $100 million fine to the Consumer Financial Protection Bureau's civil penalty fund - the largest in the regulator's five-year operating history. Wells Fargo will pay a separate $35 million penalty to the Office of the Comptroller of the Currency. Additionally, Wells Fargo said it terminated approximately 5,300 employees and managers over a five-year period for their involvement with the unauthorized accounts.
Note: No Wells Fargo executives have been held responsible for this bank's institutionalized breach of customer trust. Do you think these actions were taken without approval from at least one executive? For more along these lines, see concise summaries of deeply revealing banking corruption news articles from reliable major media sources.
New York state's attorney general on Tuesday opened an investigation into the pharmaceuticals giant [Mylan], focused on its contracts with local school systems to buy its lifesaving EpiPens. The skyrocketing price of those auto-injection devices, used to counteract potentially fatal allergic reactions, has drawn intense criticism. The office of Attorney General Eric Schneiderman said it launched its probe after a preliminary review revealed Mylan might have inserted anti-competitive terms into its deals to sell EpiPens. Schneiderman's move came within hours of U.S. Sens. Richard Blumenthal, D-Conn., and Amy Klobuchar, D-Minn., asking the Federal Trade Commission to investigate whether Mylan violated federal antitrust laws. "As the cost of EpiPens skyrocketed, schools seeking relief turned to Mylan's 'EpiPen4Schools' program," Blumenthal's office said. "Some of these schools were required to sign a contract agreeing not to purchase any products from Mylan's competitors for a period of 12 months - conduct that can violate the antitrust laws." Schneiderman's probe also comes on the heels of news that Minnesota's attorney general, Lori Swanson, has asked Mylan to provide documents that would justify the company having raised the retail price of EpiPens more than 400 percent. "No child's life should be put at risk because a parent, school, or health-care provider cannot afford a simple, lifesaving device because of a drug-maker's anti-competitive practices," Schneiderman said.
Note: For more along these lines, see concise summaries of deeply revealing pharmaceutical corruption news articles from reliable major media sources.
The Food and Drug Administration banned the sale of soaps containing certain antibacterial chemicals on Friday, saying industry had failed to prove they were safe to use over the long term or more effective than using ordinary soap and water. In all the F.D.A. took action against 19 different chemicals and has given industry a year to take them out of their products. About 40 percent of soaps — including liquid hand soap and bar soap – contain the chemicals. Triclosan, mostly used in liquid soap, and triclocarban, in bar soaps, are by far the most common. The rule applies only to consumer hand washes and soaps. Other products may still contain the chemicals. At least one toothpaste, Colgate Total, still does. Public health experts applauded the rule, which came after years of mounting concerns that the antibacterial chemicals that go into everyday products are doing more harm than good. Experts have pushed the agency to regulate antimicrobial chemicals, warning that they risk scrambling hormones in children and promoting drug-resistant infections. Studies in animals have shown that triclosan and triclocarban can disrupt the normal development of the reproductive system and metabolism, and health experts warn that their effects could be the same in humans.
Note: The US government allows corporations to decide what is "generally regarded as safe" for public health, which is why so many substances once considered safe are later found to be toxic and even deadly. For more along these lines, see concise summaries of deeply revealing health news articles from reliable major media sources. Then explore the excellent, reliable resources provided in our Health Information Center.
Children exposed to relatively high levels of PCBs in the womb may have an increased risk of developing autism, a new study suggests. PCBs, or polychlorinated biphenyls, are man-made chemicals once used in a wide range of products, from electrical appliances to fluorescent lighting. Use of these chemicals was banned in the 1970s because of concerns about their health effects. But since they do not easily break down, PCBs still linger in the environment - and in people. In the new study, researchers found that when pregnant women had relatively high levels of certain PCBs in their blood, their children were about 80 percent more likely to be diagnosed with autism versus other kids. Those children also had a roughly twofold higher risk of intellectual disabilities unrelated to autism. "Autism is a complex condition with many different causes, and those causes vary among individuals," said Kristen Lyall, lead researcher on the study. Experts believe that for children to develop autism, they have to have a genetic susceptibility and be exposed to certain environmental factors during critical periods of early brain development. Researchers are still trying to figure out what those environmental factors are. But some suspects include prenatal exposure to poor nutrition, certain infections, heavy air pollution and pesticides, according to the non-profit Autism Speaks. The new findings suggest that PCBs could be another one of the "puzzle pieces," said Lyall.
Note: Monsanto and other chemical manufacturers spent decades dumping PCBs in low-income areas. For more along these lines, see concise summaries of deeply revealing news articles on corporate corruption and health.
A former Monsanto executive who tipped the U.S. Securities and Exchange Commission to accounting improprieties involving the company's top-selling Roundup product has been awarded more than $22 million from the agency's whistleblower program. The award of $22,437,800 was tied to an $80 million settlement between the SEC and Monsanto in February, according to the [executive's] lawyer, Stuart Meissner in New York. It is the agency's second largest under the program. The Dodd Frank financial reform law empowered the SEC to award money to whistleblowers who give information to the agency which leads to a fine. Awards to 33 whistleblowers by the SEC's program have now surpassed a total of $107 million since the agency launched the program in 2011, the agency said. Monsanto's $80 million SEC settlement followed allegations that the company misstated its earnings in connection with Roundup, a popular weed killer. The SEC's case against Monsanto revolved around a corporate rebate program designed to boost Roundup sales. The SEC had said that Monsanto lacked sufficient internal controls to account for millions of dollars in rebates that it offered to retailers and distributors. It ultimately booked a sizeable amount of revenue, but then failed to recognize the costs of the rebate programs on its books. That led the St. Louis-based agriculture company to "materially" misstate its consolidated earnings for a three-year period. The award represents more than 28 percent of the total penalty and nearly the 30 percent maximum allowed under the SEC's bounty program.
Note: The above shows that Monsanto has been lying to their investors about how profitable Roundup is while major lawsuits build over the connection between Roundup and cancer. For more along these lines, see concise summaries of deeply revealing corporate corruption news articles from reliable major media sources.
Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.