Category: Legal Issues – Specific Litigation

Fatal Subtraction

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “Fatal Subtraction, How Hollywood Really Does Business” by Pierce O’Donnell and Dennis McDougal, published in 1992.

“I asked myself whether this uncanny similarity and anticompetitive market was the result of coincidence or conspiracy. Thanks to my populist tendencies and a healthy distrust of powerful institutions, I opted for the sinister explanation.”

Politics? Big Tech? Medical, legal, music, sports or oil industry?

The above quote happens to refer (in various ways) to all of the major Hollywood movie studios, just after their most lucrative years. The skyrocketing size of the home video market in the 1980’s made movie studios richer and richer, what with cable TV, VCRs and global distribution. They retained the best entertainment law firms on an ongoing basis so that whenever any powerless parties who felt wronged, tried to hire those firms to bring legal actions against them, there were conflicts of interest.

In 1988, Art Buchwald and Alain Bernheim– respectively a seasoned humorous newspaper writer and lecturer who dabbled in the movie industry, and a producer– sued Paramount Pictures Corporation for thirteen causes of action; among them, breach of contract in connection with the movie Coming to America starring Eddie Murphy. They were fortunate in that they were able to hire a big firm and could afford to pay hundreds of thousands of dollars to hire topnotch attorneys to fight a years-long legal battle.

The crux of the dispute involved the boilerplate contracts almost everyone in Hollywood was compelled by their agents to sign, in order to get work. The studios engaged in cartelizing behavior, so the powerless creative personnel were at their mercy at contract-signing. Only a tiny percentage of powerful elite stars reaped a ton of money for all movies they did, regardless of financial success. The agents claimed they were getting great deals for their less powerful talent, but that was a lie. For, starting in the 1950’s, the contracts evolved pursuant to the studios’ shady accounting practices, in a way that cheated screenwriters especially.

By the dawn of the 1990’s, big-name actors were allowed to behave like prima donnas, basically enjoying excessive expense accounts and reaping outrageously generous compensation from gross movie revenues. The movie idea originators and writers received net profit participation– i.e., the crumbs after all expenses had been deducted. The studios’ definition of “profit” was topsy turvy so when it came time to pay lowly workers, they claimed their movies were losing money!

O’Donnell and his legal team argued that certain provisions in Buchwald’s and Bernheim’s contracts were unconscionable, and therefore legally unenforceable. On principle, the studios’ oligopoly was economically bad not just for his clients, but for society (See this blog’s post “Wikinomics / Courting Justice”).

Read the book to learn every last detail of the case.

One for the Earth

The Book of the Week is “One for the Earth, Journal of A Sierra Club President” by Susan D. Merrow with Wanda A. Rickerby, published in 1992.

The Sierra Club, founded in May 1892, began with about one hundred members. Its original goal was to prevent the Sierra Nevada mountain range in California from becoming further polluted. Sadly, through the decades, the need for such an organization has grown exponentially. The Sierra Club Legal Defense Fund, a group that began using the Club’s name, actually helped raise more funds than otherwise for the Club, but took public stances with which the original group disagreed.

Beginning in May 1990, Merrow was appointed president of the Club for a year’s term. She had acquired previous experience teaching adult education classes and lobbying the Connecticut state government on environmental matters. Her new job– for which she received no salary, only reimbursement of expenses– required constant travel. Volunteers did the bulk of the Club’s work. Her and her employer’s major frustration with the then-federal government was that it was regressive in connection with all kinds of energy issues.

The Club’s lobbyists were awfully busy contacting politicians about: incinerators, recycling, composting and source reduction, increasing gas mileage and decreasing emissions in newer cars, advocating for stopping oil drilling in the Arctic, reducing pollution on land and in the sea and in the air, and arguing for stricter waste-disposal laws, etc., etc., etc.

It might be recalled that a year prior, the Exxon Valdez oil spill left about 380,000 birds dead, and resulted in severe health issues for many animals and plants, including hundreds of species of mollusks, fish and coral-reef animals, dolphins and whales. The then-legal case that might compensate injured parties (Alaska and the United States) for the disaster was still pending. However, in April 1990, Exxon suggested that it pay $100 million to settle the civil and criminal charges against it. Tens of studies done by the National Oceanic and Atmospheric Administration (NOAA) showed grievous (and probably irreparable) harm that (if a dollar value had to be put on it) was estimated at $1.1 billion.

After Iraq invaded Kuwait in August 1990, astute people knew that the Clean Air Act that was then working its way through the Congressional-passage process would become diluted by profiteers aided by propagandists. In autumn 1990, the Bryan Bill– mandating the manufacturing of more fuel-efficient cars– was stalled too, by lobbyists in the oil and auto industries, and by other presidential supporters.

The First Gulf War wreaked environmental destruction (now forgotten by Americans) consisting of “… soot from 600 burning oil wells… cloud over farmland and villages in Turkey and Iran… rain filled with toxic chemicals, polluted both the air and water. Severe respiratory illness, cancer, and ruined crops…”

On a diplomatic mission, the author visited staffers at three different magazines: Good Housekeeping, Sports Illustrated, and Seventeen. She hoped to get articles published for targeted readers of their respective, widely different demographic groups in whose interest it was to save the earth.

One concept the author conveyed was that protecting the habitat of one species, aids in the survival of all of the other species in that habitat. So ensuring a safe environment for the bobolink helps: “…lichens, apple trees, ladybugs, sumac, earthworms, chipmunks, monarch butterflies, white birches, wild blueberry bushes, goldenrod, red foxes– even humans.” The flip side is that one negative consequence leads to another when the food chain is disrupted (See this blog’s post, Rat Island).

Read the book to learn what happened to the Johnston-Wallop bill, and much more about the author’s trials, tribulations and triumphs.

Serpent on the Rock

The Book of the Week is “Serpent on the Rock” by Kurt Eichenwald, published in 1995.

This volume contained an egregious error. It appeared in an anecdote about a member of the Belzberg family, Canadian Orthodox-Jews. In the late 1970’s, Belzberg was acquiring a large quantity of stock of the retail brokerage named Bache, so one of Bache’s executives met with him, to find out his intentions.

As the meeting ended, the author wrote that Belzberg shook hands with the Bache executive. That was obviously a fictionalized detail of the story, because Orthodox Jews do not shake hands with, or touch others, except for close family members.

Anyway, in the second half of the 1970’s, tax shelters became trendy in the securities industry. In the 1980’s, Bache (with a shady reputation in the first place) sold tax shelters in the form of limited partnerships of various kinds (oil and real estate were the most common) and reaped fat fees of as much as 8%. On a bunch of them, printed marketing communications illegally contained material omissions and misstatements.

Bache’s clients were clearly unsophisticated, because anyone with a minimal knowledge of finance should have seen that the objectives of the investment were contradictory: “income, growth and safety” (!)

Brokers dispensed with the printed prospectuses (which contained disclaimers required by law), and focused on verbally selling the money-losing financial instruments to their clients. They lied about the projected financial returns (14 to 15%, when they were pretty sure there would actually be disastrous losses). They called the investments “safe”– a word that should NEVER be used on Wall Street. The proper lingo should be “low-risk” and only when that’s the truth. The limited partnerships were “high-risk.”

One man, Jim Darr, became particularly powerful in the Direct Investment Group, and engaged in a boatload of excessively greedy, unethical activities and white-collar crimes that made him fabulously wealthy. In 1983, he flew all the way to a small thrift bank in Arkansas to get a home loan of $1.8 million to purchase a mansion in Connecticut. At that time, there were plenty of local lenders he could have approached.

Another sleazy character, Clifton Harrison, after pulling his last act of unbelievable thievery, gave the excuse, “I’ve just been borrowing some money against future fees.” Read the book to learn more about the various individuals who shaped Bache’s history, and what became of them.

ENDNOTE: The above shenanigans happens every few years in the United States. The line from the movie “That Thing You Do” describes it perfectly: A very common tale, boys, a very common tale. Here is a brief elaboration of the last forty years:

Steps of the American Politico-Economic Cycle

  1. An extremely pro-business president comes to power.
  2. Excessive deregulation ensues.
  3. Shady financial instruments and money-making vehicles spike in popularity (tax shelters, savings and loan associations, goodwill valuations, junk bonds, derivatives, dot-com stocks, stock-options-repricing, subprime mortgages, payday lenders, for-profit colleges, the PACE program, etc., etc., etc.)
  4. Out-of-control greed ensues.
  5. Profiteers of all political persuasions dispense with ethical behavior.
  6. The bubble bursts. A financial crash ensues.
  7. Lawsuit time!
  8. The impoverishment rate accelerates for the middle class and the poor.
  9. Election time. “It’s the economy, stupid.” Whether true or not (usually not!), campaign-propaganda convinces voters that the president is solely responsible for their personal financial situations.
  10. The reelected president, or one from the same party, continues some of the same hog-wild policies, or the new president reverses what he can. Re-regulation ensues.
  11. Time for another round of Survival Roulette (See this blog’s post, “Blind Ambition”).
  12. Opposition-propagandists pull strings to reverse what the new president reversed. They make voters impatient for improvement, even though undoing the damage takes years and years.
  13. Election time. Repeat steps 1-12.

The Real Cost of Fracking / The Buffalo Creek Disaster / A Trust Betrayed – BONUS POST

The first Bonus Book of the Week is “The Real Cost of Fracking, How America’s Shale Gas Boom is Threatening Our Families, Pets, and Food” by Michelle Bamberger and Robert Oswald, published in 2014.

Through the decades, monster-sized American corporations have mastered the game of political machinations, public relations and propaganda in doing tremendous harm to Americans (and getting away with it!), and in defending themselves against environmental-damage lawsuits, and premises-liability, personal-injury and wrongful death lawsuits. These corporations tend to be energy companies. See the following posts in this blog for several other examples (in no particular order):

  • Klondike
  • The Law of the Jungle
  • Sons of Wichita
  • Fateful Harvest
  • The World According to Monsanto
  • Superpower: One Man’s Quest…
  • The Oil Road
  • In the Name of Profit
  • Killers of the Flower Moon, and
  • Let the People In (see boldfaced paragraphs)

American companies that do fracking is the same story. The authors loosely define fracking as “unconventional drilling” for gas and oil, and hydraulic fracturing. The fracking industry has successfully convinced landowners (through omissions, half-truths and outright lies in their pitches) that they (the owners of small farms) could make big bucks from leasing their land for the purpose of fracking (when it turned out to be the other way around, most every time).

There are three major reasons it takes so long for the public to catch on to companies that damage the earth and people and can destroy communities and/or a way of life:

  • The companies put political pressure on the EPA and state-politicians to shut up;
  • The companies have the damaged parties sign non-disclosure agreements; and
  • The companies pay hush money to, or threaten any other parties who might give them bad publicity.

“Proving proximate cause for illness is complex because the water, soil and air have multiple chemicals of varying toxicities, and [have] hardly any pre- and post-drilling testing of air, and water, soil, people and animals.”

The consequences of fracking have far-reaching potential to contaminate the nation’s food supply, when cows, chickens and other food-animals are exposed to fracking toxins.

Sadly, Pennsylvania is only one of several states that has sold out to the pro-fracking interests. The authors had hours of discussions with those very adversely affected by the litany of unpronounceable toxins very likely produced by fracking. Beginning in September of 2009, those owners of small farms developed the following health problems: rashes, burning eyes, sore throats, headaches, nosebleeds and unpleasant gastrointestinal symptoms.

The victims’ farm animals and pets had trouble reproducing, or they died. Air pollution resulted from dust, dirt and noise from heavy earth-moving vehicles and tanker trucks. In spring 2010, one family’s only water supply was terminated by the fracking company.

In addition, the family lost their livelihood breeding horses and dogs. They couldn’t afford to buy bottled water for the horses. The fracking company graciously offered to incinerate the horse’s corpse. One of their dogs also died even though it was drinking bottled water and was barely two years old. The suspected reason was that it drank wastewater that was poured on the family’s property.

Further, tests sufficiently specific to provide evidence of proximate cause between:

the family’s health problems, their animals’ deaths, and the drop in their property’s value due to contamination; and

the fracking company’s toxic practices

were prohibitively expensive.

Also, apparently, the company wasn’t legally required to disclose which toxins were produced by its operations, because it didn’t– when the leasing documents were signed with the landowners.

In central Arkansas, fracking wastewater was recycled when it was injected into deep wells, causing small earthquakes. Other states that allowed fracking at the book’s writing included: Ohio, Texas, Louisiana, Colorado, North Dakota and New York.

Read the book to learn a wealth of additional details on fracking, its adverse effects, of the complicated laws governing (or not governing) land in Pennsylvania and New York State at the book’s writing, and the authors’ suggestions for how to regulate the oil and gas industry to strike a balance between extracting needed fossil fuels and public health and safety; and sensible energy policy.

The second Bonus Book of the Week is “The Buffalo Creek Disaster, The Story of the Survivors’ Unprecedented Lawsuit” by Gerald M. Stern, published in 1976.

“If the government ever did knock on my door, I’d probably expect harm and harassment instead of help.”

-The [Caucasian] author’s attitude when he was a federal civil-rights attorney, personally visiting unannounced, helpless black families in Southern States, to inquire whether they required assistance with registering to vote, or with being protected, during the Civil Rights movement in the 1960’s.

In West Virginia coal country in the 1950’s, one dam overflowed. Then two more dams were built. The construction of the third dam– built cheaply– was subpar pursuant to civil engineering standards. The dam-builder was the Buffalo Creek Mining Company. Its holding company Pittston Company knowingly allowed a burning pile of coal waste-products to obstruct the stream, so that sooner or later, a tidal wave would flood the area.

In February 1972, it happened. More than 125 people drowned and hundreds were left homeless in a valley when the third dam broke, causing a stream to overflow in Middle Fork Hollow.

The possible causes of action in the ensuing class action suit included involuntary manslaughter and criminal negligence, but “psychic impairment” was a relatively new concept that had yet to be commonly litigated. It was known as “shell shock” in WWI. The new label for it after the Vietnam War was “Post-Traumatic Stress Disorder” (PTSD).

In April 1972, the author and his public-interest law firm, Arnold & Porter began to represent people harmed by the flood. They had to take the case on contingency, a rarity, only because those survivors couldn’t afford to pay the lawyers with any other fee structure. There occurred the usual frustrations, uncertainties and wrenches in the works that complicated the case, making it more expensive and time-consuming. Just a few included:

  • the fact that the wife of and daughter of, and the rival himself of the recently elected United Mine Workers Union’s president were murdered;
  • Once the lawyers decided whom to sue and in which court, it was hard to guess which of three judges would be assigned to the case (bringing up the cliche, “good to know the law, better to know the judge”);
  • At that time, there was a limit of $110,000 that could be awarded to each personal injury / wrongful death victim in the state of West Virginia; and
  • The disaster occurred less than two months prior to the West Virginia gubernatorial election.

Read the book to learn of the slew of additional details on the case and the fate of the stakeholders.

Yet one more largely similar disaster case was documented in the third Bonus Book of the Week, “A Trust Betrayed, The Untold Story of Camp Lejeune and the Poisoning of Generations of Marines and Their Families” by Mike Magner, published in 2014.

Like the fracking and coal-country stories, this story involved contaminated water, too. However, it was not a monster-sized corporation’s, but the United States government’s, negligence and secrecy that harmed people.

This story also differed in that the residents of the community were fluid– living there only months or a few years, compared to the fracking and coal-country victims. So they didn’t immediately connect the harm done to them with their drinking water, and communication among them was more scattered.

At the dawn of the 1980’s, an under-resourced water-testing lab at Camp Lejeune (where U.S. Marines were stationed) in North Carolina began to get an inkling that wells that provided drinking-water contained toxins such as THM’s, TCE, PCE, pesticides, PCB’s, VOC’s and benzene.

New federal clean-water laws were going into effect, so the Navy had to comply. The water was supposed to be tested regularly for grease, oil and suspended solids. If results showed contamination above a certain level, the lab was supposed to tell the EPA, but it didn’t handle cleanup.

The lab’s five (alarming) test-results between October 1980 and February 1981, were sent to Naval Facilities Engineering Command, Atlantic Division, where they disappeared into a black hole; not necessarily because there was a cover-up at that time, but merely due to bureaucracy– the lab workers thought the Navy knew what they were doing and would do the testing and regulating.

Camp Lejeune’s base commanders didn’t want to know whether individual wells were polluted. They hoped the base had sufficient clean wells to dilute the water from the contaminated ones. Shutting down any of the wells would produce a water shortage for the whole base during the summer, when demand for water was highest. Besides, water-testing was expensive.

Starting in the 1960’s and for decades thereafter, the military families and employees who lived in a certain geographic area on the base saw a disproportionate number of miscarriages, birth defects, and in later years, cancer. The suspected sources of pollution (or legal-defense scapegoats) included a dry cleaners, fuel tanks and a pumping station that exuded gallons and gallons of fuels and chemicals (through spills, leaks and inadequate safety practices) all the time.

In spring 1985, the crisis started to hit the fan, when the Navy was compelled to notify the residents that their drinking water might be unsafe (when in reality, for decades, it definitely had been).

Read the book to learn lots of additional details of what happened then (hint: the usual federal and state inter-agency (and military-branch) fighting, finger-pointing, report-writing, excuses for delays in the form of follow-up-research, and all manner of bureaucratic secrecy and shenanigans; after which the victims and taxpayers were the ones who paid the price).

Father Son & Co.

The Book of the Week is “Father Son & Co., My Life at IBM and Beyond” by Thomas J. Watson Jr. and Peter Petre, published in 1990.

Curiously, the word “mainframe” never appeared in this volume. Not even once.

Born in 1914, Watson Jr. (hereinafter referred to as “Jr.”), who grew up in Short Hills, New Jersey, was the oldest of four siblings. His father (Watson Sr., hereinafter referred to as “Sr.”), who played well with others, executed a financial turnaround of Computing-Tabulating-Recording Company (renamed IBM in 1924).

Sr. instituted a corporate culture of “investiture socialization”– training, educating, and fostering cooperation among employees and rewarding them for performing well. They had air-conditioned offices and factories (rare for the 1930’s) in Endicott, in upstate New York. Their corporate campus afforded them the use of a country club that offered free concerts, a dining room, two golf courses, a shooting range, and library.

Top management encouraged even the lowest-level workers to make suggestions for improving working conditions. On one occasion, an anonymous complaint that reached Sr.’s desk alleged that a heating system in a plant was being renovated too early in spring, making the work environment freezing, and there was one toilet for fifty employees. Jr. was sent to personally investigate. He wrote that he began remedying the situation within one day.

The first half of the twentieth century is obviously a bygone era in employment. The non-union IBM was competing with other employers that provided labor-union: benefits, compensation and job security for their workers.

Sr. was practically the only corporate executive in America in the Depression years who agreed with FDR’s policies. One hard and fast rule under the “cult of personality” which Sr. developed, was that alcohol was prohibited in all IBM offices at all times, including lunchtime off-campus, and even special occasions.

IBM initially sold scales and meat slicers business-to-business, but switched to leasing of, and tech support for, electric typewriters and punch-card machines. That last product automated all accounting functions and processing of sales data.

In 1940, Sr. testified at a Congressional hearing on “technological unemployment”– the unfortunate, economically adverse situation in which people are thrown out of work when processes get automated. Sr. argued that his company was good for the economy, as it stimulated consumerism.

During WWII, IBM contracted with the War Department to manufacture machine guns, and keep tabs on a slew of battle-related statistics: “… bombing results, casualties, prisoners, displaced persons, and supplies.”

IBM found that the most cost-effective way to run its international business through its subsidiary, World Trade, was to assemble machine-parts in various countries so as to force interdependence among them and share the wealth. Immediately after WWII, though, there were disastrous financial losses in Europe especially, until infrastructure could be rebuilt.

By then, the company had about 22,000 employees, most of whom worshipped Sr. His photo hung on the walls of their offices. Nevertheless, at the time, he was smart enough to listen to IBM’s vice president of engineering. The latter was virtually the only manager who had the foresight to raise the alarm early, on the coming obsolescence of the medium of punch-cards, which took up scads of storage space but allowed instantaneous data-viewing. The technologically superior, compact medium of magnetic tape stored data which were invisible until viewed on a monitor. It was unclear how long the transition from punch-card to tape would take, but entrepreneurs were already making inroads on the extremely expensive experimentation required.

In the 1950’s, the U.S. government commissioned IBM and the Massachusetts Institute of Technology to do a joint defense project called SAGE. In 1957, the Soviets’ launch of Sputnik showed SAGE to be “… a costly fantasy, the SDI of its day. Before long, we found ourselves vastly overarmed, faced with the danger of mutual annihilation.”

In 1967, in the wake of racial tensions in America, IBM built a plant in the Bedford-Stuyvesant section of Brooklyn, New York City. It was part of a social program that was modestly successful; suggested by a task force comprised of white business leaders who assisted a black community board with economic development.

The author admitted that IBM had become a monopoly of sorts by the 1970’s. “The [anti-trust case against IBM] dragged on for twelve years, until the Reagan administration finally dropped it in 1981… the natural forces of technology etched away whatever monopoly we may have had.”

Read the book to learn about the role played by IBM with regard to other major negative and positive economic trends driving America over the course of more than half a century, plus more biographical information on the author and his family.

ENDNOTE: Alarmists on both sides of the economic spectrum shouldn’t have nearly as much fodder with which to propagandize, if they heed the lessons from this book, lessons that smack of deju vu all over again :

  • Some people might say Moore’s Law has run its course in the United States (See the post, “Moore’s Law / Elon Musk”).
  • Microsoft learned the most lucrative lessons from IBM in preparing its own legal defense against the Justice Department’s antitrust accusations.
  • The national healthcare system of the United States can only improve in the coming decades– eliminating one major cost for employers that was seriously hampering their bottom line.
  • The way IBM began to do business internationally decades ago, is still in existence. And
  • supply and demand will compel Americans to find solutions to seemingly overwhelming problems, such as those relating to energy, environmentalism and education.

Of course, there will always be leaders who, grateful for term limits, lacking courage– adopt the attitude of the character Linus in the “Peanuts” comic strip: No problem is ever so big or so complicated that it can’t be run away from.

Pharma

The Book of the Week is “Pharma– Greed, Lies, and the Poisoning of America” by Gerald Posner, published in 2020.

In 2016, the “superbug” Enterobacteriaceae turned out to be resistant to 26 different antibiotics. About half of patients who contract it, die. There are a bunch of other similar bacteria in the world. The author warned that in the future, a bacterial pandemic was on the way, for which there would be no antibiotic cure. Apparently, there can be a viral pandemic, too– one that cannot be treated with antibiotics at all.

For, antibiotics kill only bacteria, if that. Yet, in the United States, for decades, antibiotics have been prescribed to treat (mild!) viral illnesses. That is one major reason that superbugs have become a trend. And there has been an epidemic of diabetes type II. And many other adverse consequences.

Anyway, the author recounted the history of big-name drug companies, which began selling morphine to soldiers during the American Civil War. In the second half of the 1800’s, Pfizer, Squibb, Wyeth, Parke-Davis, Eli Lilly, and Burroughs-Wellcome began mostly as family proprietorships that sold highly addictive, unregulated drugs. Bayer produced heroin in 1898. The twentieth century saw Merck put cocaine in its products; other companies jumped on the cocaine bandwagon.

In 1904, the head of the United States government’s Bureau of Chemistry, Harvey Wiley, was concerned about contaminants in the nation’s food supply. Consumers were being sickened by chemicals that were supposed to retard spoilage or enhance the appeal of foods. They included, but were far from limited to: borax, salicylic acid, formaldehyde, benzoate, copper sulfate and sulfites. Trendy patent medicines were also doing harm to consumers. The word “patent” gave the impression of approval or regulation of some kind, but actually meant nothing.

Through the first third of the twentieth century, the government continued categorizing, monitoring and taxing drugs, but the pharmaceutical companies continued using trade groups and legal strategists to protect their profits. The 1930’s saw the big drug companies start research laboratories. Finally in 1938, the government established the Food and Drug Administration, and began to require extensive product-testing and labeling, and factory inspections. That same year, the Wheeler-Lea Act prohibited false advertising of drugs, except for previously manufactured barbiturates and amphetamines.

After Pearl Harbor was attacked in December 1941, America sought to manufacture penicillin in volume. For, the newly introduced antibiotic would be very helpful to the war wounded. But the drug’s fermentation process required a rare ingredient. In spring 1942, one patient who had friends in high places was cured. That largely used up the penicillin supply in the entire country. Other kinds of antibiotics were produced in the next decade, but their profitability was hampered by the bureaucratic processes of patent applications and FDA approval applications.

In the late 1940’s, Arthur Sackler and his brothers founded a family drug-company dynasty. The author revealed excessive trivia from FBI files on them and other greedy characters whose tentacles pervaded all businesses that could help sell (translation: maximize profits of) the family’s healthcare goods and services. This meant consulting, advertising, publishing, charities, public relations, database services, etc. The parties failed to disclose countless conflicts of interest.

In the early 1950’s, drug companies successfully lobbied the U.S. Patent and Trademark Office to allow drugs with strikingly similar molecular structures to be deemed different so that they could be granted separate patents. A higher number of drugs could then be rushed to market sooner, and make the most money.

In 1952, farmers fed Pfizer’s antibiotics to their animals so that they grew bigger (both Pfizer and the animals). In the mid-1950’s, Pfizer, Lederle, Squibb, Bristol and Upjohn engaged in an illegal tetracycline price-fixing scheme. They reaped hundreds of millions of dollars in earnings. The FDA chief was in Sackler’s back pocket. So when violations came to light, the FTC and FDA gave the offenders a slap on the wrist. However, senator Estes Kefauver was a thorn in their side.

Kefauver led an investigation as to why America’s drug prices were so excessively high when compared with those in other nations. In fighting back, the drug industry smeared Kefauver as a liberal pinko, claiming he had designs on forcing socialized medicine on the United States. The nineteen drugmakers under the gun gave bogus excuses. The real reason is that America’s drug prices and patents are subjected to minimal or no regulation, unlike everywhere else.

In 1956, Americans were told they were stressed, but a wonder drug called “Miltown” would help calm them down. The mild tranquilizer became a best-seller, until it was counterfeited and appeared on the black market, and its adverse side effects gave it bad publicity. Oh, well.

Then in the 1960’s came the culture-changing birth control Pill, and Valium– also called “mother’s little helper” that was marketed as a weight-loss aid. The next game-changer was thalidomide. Kefauver used the worldwide backlash against this drug to push through some drug safety and effectiveness regulation in the United States in 1963. For a change. Even so, in 1972, when the U.S. Supreme Court confirmed certain regulatory powers conferred on the FDA, drugmakers merely sought additional markets for their products on other continents.

In 1976, there was a swine flu epidemic in America. Healthcare companies were reluctant to develop a vaccine for it, fearing an orgy of litigation from victims if any harm was done. So the government unwisely agreed to foot any legal bills. Sure enough, some vaccine recipients developed cases of Guillain Barre syndrome, and neurological complications. The (taxpayer-funded) Justice Department took the hit. Other parties piled on. “The CDC had exploited ‘Washington’s panic’ to ‘increase the size of its empire and multiply its budget.’ “

Moving on, the author told the whole sordid story of the “opioid crisis” in America. In a nutshell: in May 2002, Purdue Pharma, maker and unethical marketer of OxyContin, hired Rudy Giuliani’s firm to defend it against the firestorm from its host of illegal activities. The firm collected a $3 million fee per month. Purdue collected $30 million per week from OxyContin sales. To be fair, Purdue and the Sackler family were the poster-scapegoats of the crisis. Numerous other parties aided and abetted them: other pharmaceutical companies, doctors, FDA bureaucrats, and pain management “experts” and pharmacists. The far-reaching consequences have caused a lot of trouble for society as a whole in the areas of: increased healthcare costs, criminal justice, social services, drug rehabilitation services, lost productivity and earnings, etc.

Read the book to learn an additional wealth of details and the details of wealth of the healthcare industry’s evolution into a hegemonic legal behemoth / excessive profit center, in the form of a series of cautionary tales in various topic areas– drug advertising, blood donations, biotech, epidemics, pharmacy benefit managers– that wrought major good and bad (mostly bad) cultural and regulatory changes (including the Hatch-Waxman Act and the Orphan Drug Act); plus the family battles following the sudden death of Arthur Sackler.

See Nothing and Nobody – BONUS POST

SEE NOTHING AND NOBODY

DOWN BY THE SCHOOLYARD

sung to the tune of “See Me and Julio Down By the Schoolyard” with apologies to Paul Simon.

President Trump said reopen schools.

So did the czar of education.

When the teachers found out they began to shout,

which started the litigation.

Teachers said naw! Teachers said naw!

A lot of sick we saw.

There ought to be a law.

Florida’s gov stood his ground, said we’re not bound

to conform to the convention.

Other govs said you must open schools or we’ll legally quash your dissension.

We’ve lost our way.

Don’t know where we’re going.

We’ve lost our way.

Law takes its time. Don’t know where…

Goodbye democracy, via the scourge of Corona.

See nothing and nobody down by the schoolyard.

See nothing and nobody down by the schoolyard.

Oh oh, people are saying they’re going to take school away and have online and home education.

And when the special interest groups have total control,

we’re gonna have an airheaded nation.

We’ve lost our way.

Don’t know where we’re going.

We’ve lost our way.

Law takes its time. Don’t know where…

Goodbye democracy, via the scourge of Corona.

See nothing and nobody down by the schoolyard.

See nothing and nobody down by the schoolyard.

See nothing and nobody down by the schoolyard.