Highlights
- In the event of the biggest fraud settlement in US history, Pfizer paid $2.3bn (£1.7bn) for false claims relating to Bextra pain medicine. One of the largest criminal fines in history.
- Further, three former Tepco execs cleared the negligence eight years after the disaster, costing the company £330bn in compensation claims.
- 2010 witnessed the giant marine oil spill in history occurring in the Gulf of Mexico – the Deepwater Horizon Oil Spill.
Eventful ventures and damages led the companies to shell out millions and sometimes billions in criminal disasters. Notably, starting radiation leaks to environmental disasters while pharmaceutical companies make false claims.
Gather insights at the largest criminal fines in history, including the one paid by Pfizer. Moreover, the list of companies who had to pay them, and why they were issued.
Who has paid the largest criminal fine in history?
Tepco – £330bn
A nuclear disaster in Fukushima, Japan, in 2011 led to an investigation into the plant operator’s preparedness event. Eventually, reports reveal that energy company Tokyo Electric Power (Tepco) caused failure to meet safety requirements or plan for such an event. The independent investigation set up by Japan’s parliament states that the nuclear outbreak at Fukushima was “a profoundly man-made disaster.”
Further, three former Tepco execs cleared the negligence eight years after the disaster, costing the company £330bn in compensation claims. The report says that radiation leakage had forced tens of thousands of people to leave their homes. And, people claimed compensation that the company paid out in the largest criminal fine in history.
Most expensive and largest criminal fine in history paid by companies
The criminal fine paid by Tepco in response to its failings regarding the Fukushima nuclear disaster is by far the largest by any company in the world. Yet other companies have been forced to shell out billions in damages, including BP, Bank of America, and Volkswagen recently.
BP – £47bn
2010 witnessed the giant marine oil spill in history occurring in the Gulf of Mexico – the Deepwater Horizon Oil Spill. Additionally, the oil spill covered 60,000 square miles and poured into the sea for four months. Furthermore, It is known as the most problematic industrial environmental disaster in US history. A response to protect waters, beaches, wetlands and more began. However, the spill caused adverse damage to marine and wildlife habitats and industries. Reportedly, the total compensation paid out by petrol company BP exceeded £47bn.
Bank of America – £11bn
For its role in the 2008 financial crisis, Bank of America paid £11bn in damages. It was not the only banking institution to have to shell out with JP Morgan (£8bn) and BNP Paribas (6.5bn). Likewise, the financial crisis was sparked by banks lending to people who would be very unlikely to pay it back, known as a subprime loan.
Volkswagen – £10bn
An issue regarding emissions led to Volkswagen paying £10bn for civil and criminal penalties in 2016. The VW scandal saw cars recalled and refitted with the appropriate emissions parts. Further, it brought into focus the environmental impact of diesel.
What was the Biggest pharmaceutical fine paid?
Pfizer – £1.7bn
In the event of the biggest fraud settlement in US history, Pfizer paid $2.3bn (£1.7bn) for false claims relating to Bextra pain medicine.
Following the case, the market in 2004 shut down Bextra supplies. Pfizer Inc pleaded guilty to the 2009 charges.
Reports from the US Department of Justice say its marketing team promoted Bextra for acute pain, surgical pain, and other unapproved uses. However, its salesforce promoted the drug directly to doctors for those unapproved uses and dosages.