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The Biggest Ever Business Fines

The Biggest Ever Business Fines

One of the pitfalls of rising to the top is that when the time comes to make (massive immoral) mistakes, the fines are pretty hefty ΓÇô something Barclays Bank is in the middle of realising in the headlines right now.

But in spite of the scandal, Barclays’ £290 million payout is barely a dock in pocket money compared to some.

We look at the biggest business fines of all; how much, what for, the impact on business and what the equivalent money would mean to us mere mortals.

Company: GlaxoSmithKline

Crime: Bribing healthcare professionals to promote unapproved drugs with serious potential health risks to adults and children.

Fine: $3 billion (£1.93 billion).

Impact: 35% of annual net income.

Equivalent: 55 Andy Carrolls or 3.86 billion cans of Coca-Cola.

Company: Pfizer

Crime: Misbranding and marketing unapproved drugs illegally ‘with the intent to defraud or mislead’.

Fine: $2.3 billion (£1.48 billion).

Impact: 23% of annual net income.

Equivalent: 740,000 last minute Olympics tickets or 743.7 million Happy Meals.

Company: Abbott Laboratories

Crime: Misbranding and marketing drugs for unapproved or inappropriate use to patients suffering from dementia and schizophrenia.

Fine: $1.6 billion (£1 billion).

Impact: 28% of annual net income.

Equivalent: 666 Bugatti Veyrons or 769.2 million litres of unleaded petrol.

Company: Intel

Crime: Offering discounts to a major distributor to favour Intel products and paying a manufacturer to delay marketing a rival product line and to favour Intel products.

Fine: $1.45 billion (£948 million).

Impact: 11% of annual net income.

Equivalent: 7,250 trips to space or 1.58 billion first class stamps.

Company: Microsoft

Crime: Abusing market domination to install Microsoft operating systems as standard and failing to share programming code with potential competitors.

Fine: $1.12 billion (£719 million).

Impact: 5% of annual net income.

Equivalent: 44.8 million acres (0.13%) of Mars or 287.6 million Tesco meal deals.

Elsewhere on the Blog…

ΓÇó The Most Powerful Unknown Businessmen

ΓÇó Who Actually Owns London?

ΓÇó The Generation About to Inherit the World

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Author: | July 19, 2012 | 0 Comments

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