Dolan Out at Bristol-Myers
Bristol-Myers made several other payments to shareholders related to the channel stuffing and other issues, including its relationship with ImClone Systems (IMCL). ImClone developed the cancer drug Erbitux and signed a collaboration deal with Bristol-Myers.
The total bill for Bristol-Myers Squibb to mollify regulators and shareholders was $839 million.
The U.S. attorney deal essentially put Bristol-Myers on probation, removing the risk of a criminal complaint as long as the company acted within the stated guidelines for two years.
The deferred prosecution agreement also resulted in Dolan losing his job as chairman. He was replaced by Robinson, a Bristol-Myers director since 1976, as nonexecutive chairman. Robinson is a former chairman and CEO of American Express (AXP).Lacey was brought in to ensure that Bristol-Myers lived up to its end of the bargain and to monitor its corporate behavior through at least April 2007. Lacey had served as an independent adviser to the company since June 2003. According to Bristol-Myers, both Lacey and Christopher J. Christie, the U.S. attorney for New Jersey, met with the board on Monday. The company said Tuesday that Lacey's recommendation followed an inquiry by him and the U.S. attorney into "issues related to corporate governance in connection with the negotiation of a settlement agreement of the pending Plavix patent litigation." However, neither found "that there had been any violation of the deferred prosecution agreement. No finding of any unlawful conduct by the company or any of its employees has been made."
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