Generic Drug Price Fixers Do Not Fear Criminal Charges But Effective Oversight

Bloomberg has a great example of how little fear the business community currently has for the criminal justice system. According to the article, there is an ongoing investigation by the Justice Department that is looking into price fixing in the generic drug industry. Over a dozen companies and two dozen drugs are involved in the investigation. Once again, it looks like the collusion has occurred as the industry has consolidated and the individual players feel less of a need to actually compete directly with each other – just another example of the need for stricter antitrust enforcement. But the striking thing is the comment in the New York Times from a Wells Fargo analyst about this investigation. “We are less concerned about the financial impact of fines, although they could be significant, but rather how items like this can bring calls for controls and oversight.” Yes, there is no need to worry that business will be seriously damaged by its criminal activity. What business really needs to fear is that there might be effective oversight that impedes that criminal activity. Such is the state of American business and ineffectiveness of the criminal justice system to deal effectively with white collar crime.