Case 3-2 Amgen Whistleblowing Case Amgen, a Thousand Oaks, California–based comp

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Case 3-2 Amgen Whistleblowing Case

Amgen, a Thousand Oaks, California–based company, had the unenviable task of dealing with lawsuits filed by 15 states in 2009 alleging a Medicaid kickback scheme.1 To make matters worse, two additional whistleblowing lawsuits were filed against the company in Ventura County. The complaints, which don't appear related to the fraud alleged by the group of states, were brought by former employees who said they had uncovered wrongdoing at the biotech giant and were terminated after they raised red flags to superiors. One employee alleged the company violated federal law by under-reporting complaints and problems with the company's drugs after they hit the market. The facts of that lawsuit are described below.

Former Amgen employee Shawn O'Brien sued Amgen for wrongful termination on October 9, 2009, alleging he was laid off in October 2007 in retaliation for raising concerns about how the company reported complaints and problems with drugs already on the market. O'Brien worked as a senior project manager for Amgen's “Ongoing Change Program,” according to the lawsuit filed in Ventura County Superior Court. His job was to improve Amgen's “compliance processes with high inherent risk to public safety, major criminal and civil liability, or both,” according to the lawsuit.

The lawsuit alleged that in April 2007, Amgen's board of directors flagged the company's process for dealing with post-market complaints about drugs as a potential problem. Federal law requires drug companies to track and report to the Food and Drug Administration any problems with their drugs after they hit the market. In June 2007, O'Brien was put on the case. He soon uncovered facts that Amgen was not adequately and consistently identifying phone calls or mail related to post-marketing adverse events of product complaints. That year, O'Brien warned the company about the seriousness of the issues but, he claims, the company would not take any action or offer any support. In August 2007, O'Brien took his complaint to a senior executive/corporate officer (unnamed) and warned that Amgen's process for dealing with post-market problems wasn't adequate.

In early September of 2007, O'Brien's managers instructed him to stop all work and not discuss the issues any further with anyone. Approximately four weeks later he was informed that he was being terminated as part of Amgen's October 12, 2007, reduction in the work force.

To help you answer the following questions, refer to the Amgen Web site on corporate compliance at: www.amgen.com/corporatecompliance.html.

Read the above case and write up an executive summary on the case, including answers to the following questions.

1. How did Amgen's unethical behavior contribute to the problems with Medicaid kickbacks?

2. Why does the public consider this scandal to have an unethical dilemma?

3. Explain what is meant by whistleblowing?

Include your opinions and identify any gaps between public expectations of ethical standards and universal professional codes of ethical standards.

Explanation / Answer

Solution.

1.

Amgen's unethical behavior contribute to the problems with Medicaid kickbacks

As given in the problem that Amgen a thousand Oaks, California based company, had the unenviable task of dealing with lawsuits filed by 15 states in 2009 alleging a Medicaid kickback scheme

For the same matter there were whistleblowers in the organization which sued against the organization which causes the problem with Medicaid kickbacks and at the end the result declared against the organization.

As the organization was found guilty for its unethical behavior and the same was the Amgen’s unethical behavior issue with it.

2.

Public considered this scandal to have an unethical dilemma

Beacuse there is a whistleblowing and it causes the result of unethical issue of the organisation. The same is considered the scandal related to the unethical delemma which leads to the Public to secure their ethical code of conduct about the organisation.

3.

Whistleblowing is officially defined as ''making a disclosure that is in the public interest''. It will usually occur when an employee discloses to a public body, usually the police or a regulatory commission that their employer is partaking in unlawful practices.

Whistleblowing is to be encouraged as it is a efficient and effective way of curbing unlawful practices. As a result there is significant legislation in place to protect whistleblowers.

You are a whistleblower if you are a worker and you report certain types of wrong doing. It means your are blowing a whistle for the wrong doing. This is usually be something you have seen at work - through not always.

The wrong doing you disclose must ne in the public interest. This means is must affect others e.g. the general public.

As a whistleblower you are protected by law- you shhould not be treated unfairly or lose your job because you 'blow the whistle'.

You can raise your concern at any time about an incident that happened in the past, is happening now, or you believe will happen in the near future then you can report about that and the same process is called Whistleblowing.

In other words whistleblowing means to report the unethical behaviour in the workplace like :-

1. A criminal offence, e.g. fraud

2. Someone's health and safety is in danger

3. Risk or actual damage to the environment

4. Risk or actual damage to the environment

5. A Miscarriage of justice

6. The company is breaking the law, e.g. doesn't have the right insurance.

7. You believe someone is covering up wrondoing.

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