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In
this issue:
Drug Makers Settle Overpricing Suit
Eight drug makers have agreed to pay the state of Iowa more than $4 million to settle charges that they inflated prices to defraud the state Medicaid program, the Des Moines Register reports. The lawsuit alleges that pharmaceutical companies included in the settlement inflated prices more than a thousand percent over standard market rates. The newspaper notes that the eight firms participating in the current settlement are among the smallest of the 78 named in the original suit. Jennifer Jacobs, DesMoines Register 11/14/2009
Cheesecake Factory Settle EEOC Suit
The Cheesecake Factory has agreed to pay $345,000 to settle an Equal Employment Opportunity Commission lawsuit that accused the restaurant chain of sexually harassing male employees. According to the lawsuit, six male employees at an Arizona restaurant were repeatedly harassed and sexually assaulted by other male employees. Managers at the restaurant failed to intervene despite repeated complaints from the victims, the agency said. Luci Scott, Arizona Republic 11/12/2009
Company Linked to Outbreak Failed to Test Beef
A large ground beef producer linked to a deadly E. coli outbreak failed to test its ingredients before shipping its final product to retailers, the New York Times reports. According to the newspaper, the AFA Foods facility ceased testing ingredients under industry pressure. The recent E. coli outbreak has killed two people and sickened about 500 others. Michael Moss, The New York Times 11/12/2009
Finger Amputations Prompt Stroller Recall
A Connecticut-bases stroller manufacturer announced yesterday that it is recalling about 1 million baby carriages because of a finger amputation risk to children. According to the Consumer Product Safety Commission, Maclaren USA Inc. had received at least 12 reports injuries resulting in amputation during the past decade from children placing their fingers in the side hinges of the strollers. The recall covers all umbrella strollers sold by the company since 1999. Inyoung Hwang, Bloomberg 11/09/2009
Regulators Warn of Swine Flu Treatment Scams
The Food and Drug Administration is targeting the makers of more than 100 products that claim to prevent or treat the H1N1 flu virus, the New York Times reports. According to the agency, unapproved products making such claims are in violation of federal law. The FDA is also warning consumers to be wary of sites selling fake Tamiflu online. Leslie Wayne, The New York Times 11/05/2009
Survey: Doctors Often Ignore Screening Guidelines
About 80 percent of doctors often ignored guidelines issued by major medical organizations for cervical cancer screenings, a survey of about 1,200 physicians has concluded. According to researchers, doctors consistently recommended more Pap smear screenings than were necessary. The study appears this week in the journal Annals of Internal Medicine. Roni Caryn Rabin, The New York Times 11/05/2009
Report: Pfizer to Pay $75 Million in Punitives
A Philadelphia jury ordered Pfizer Inc. to pay $75 million in punitive damages to a woman who developed cancer after taking the menopause drug Prempro, according to those familiar with the matter. Jurors had previously awarded the plaintiff $3.7 million in compensatory damages. The exact amount of punitive damages awarded in the verdict have been sealed by a judge. Jef Feeley, Bloomberg 11/05/2009
Highway Agency Disputes Toyota Recall Statements
The National Highway Traffic Safety Administration on Wednesday slammed Toyota Motor Corp. for asserting that 3.8 million recalled vehicles were without defect, the Los Angeles Times reports. In a statement, the agency said that Toyota and Lexus vehicles have design defects in the accelerator pedal and the driver's foot well. Toyota had denied that a defect was to blame for a number of uncontrolled-acceleration incidents across the country. Ken Bensinger and Ralph Vartabedian, LA Times 11/05/2009
FDA to Take on Medication Errors
Federal health regulators have announced that they are undertaking efforts to reduce the number of deaths and serious injuries caused by drug dosage errors, according to the Los Angeles Times. The Food and Drug Administration plan, called the Safe Use Initiative, aims to identify drugs and circumstance that commonly result in misuse of medication. Researchers say that given the scope of the problem, such an examination in long overdue. Andrew Zajac, LA Times 11/05/2009
States File Suite Over Alleged Anemia Drug Kickback Scheme
Amgen Inc. illegally offered kickbacks to medical providers to increase sales of the anemia drug Aranesp, a lawsuit filed by 15 states claims. According to the lawsuit, Amgen, ASD Healthcare and International Nephrology conspired to offer free trips and other inducements to doctors and health care providers who prescribed Aranesp to patients. Aranesp and other anemia drugs have been come under criticism after recent studies have linked the medicines to increased risk of cardiovascular problems. Martin Zimmerman, LA Times 10/31/2009
OSHA Issues Record Fine Against BP
The Occupational Safety and Health Administration has ordered BP to pay $87 million in fines for safety violations at a plant where 15 workers were killed in 2005. The fine stems from the oil giant’s failure to comply with 271 notifications to correct safety problems at the Texas City refinery, federal safety agency documents indicate. The fine is the largest ever issued by OSHA. Steven Greenhouse, The New York Times 10/30/2009
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