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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Diet Drug Litigation

Wyeth was named as a defendant in numerous legal actions relating to the diet drugs Pondimin (which in combination with phentermine, a product not manufactured, distributed or sold by Wyeth, was commonly referred to as “fen-phen”) and Redux, which were used in the United States, prior to their 1997 voluntary market withdrawal, by approximately 5.8 million people. These actions alleged that the use of Redux and/or Pondimin, independently or in combination with phentermine, caused certain serious medical conditions, including valvular heart disease and primary pulmonary hypertension. In October 1999, Wyeth entered into a nationwide class action settlement consisting of two settlement funds: Fund A (with a value at the time of settlement of $1 billion plus $200 million in legal fees) covered refunds, medical screening costs, additional medical services and cash payments, education and research costs, and administration costs. Fund B (to be funded by the company on an as-needed basis up to a total of $2.55 billion, plus interest) compensated claimants with significant heart valve disease. In addition, the company has incurred hundreds of millions of dollars more in damage awards and settlements with some of the approximately 63,000 individuals who opted out of the nationwide class action.

Misconduct Type
Health
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Announcement
10/7/1999
Contractors Involved Penalty
Total
Wyeth Unknown
Further Information Released
Wyeth 2007 Financial Report (excerpt) 3/4/2009

Federal Contractor Misconduct Database