In: Business and Management

Submitted By morlisa
Words 691
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September 13, 2015

Amgen Whistleblowing Case

ACCT 530
Ethical Obligations and Decision Making in Accounting

Lisa Moreaux

Amgen Inc. is a pharmaceutical company based out of California. In 2009, there were 15 states that filed lawsuits against the company for accusations of participating in Medicaid kickback schemes. In 2007, Amgen’s board of directors discovered a potential problem with the dealings of post-market complaints regarding their drugs. Amgen was out to push the sale of their new drug Aranesp, which was developed to treat amnesia associated with chronic renal failure. They employed Shawn O’Brien to take a deeper look into the company’s process to make sure they were abiding by the Food and Drug Administration federal laws and reporting problems properly after they hit the market. The following report will summarize the ethical issues surrounding the case along.
Federal law requires after-market reporting on all new drugs under the FDA drug compliance program; however, Amgen violated both ethical and legal standards. The integrity of the company was jeopardized when they chose to withhold information received regarding adverse effects of the drug. Shawn O’Brien was a senior project manager who was hired to improve the company compliance process with FDA reporting. He became aware of the lack of reporting complaints and took this information to top management and was told to be quite about his findings. When he did not comply, he was later fired. O’Brien was forced to take legal action. He sued the company under the “whistleblower-protection” act of Sarbanes Oxley. Whistleblowing which is protected under section 806 of the Sarbanes-Oxley (SOX) act of 2002, provides legal protection to employees of public companies that report suspected violations for a variety of federal offenses.
Amgen’s code of conduct clearly states that all staff…...

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