Federal Antitrust Agencies Impose Penalties For False Representations About Patent Infringement Settlements

Recent decisions by the Department of Justice Antitrust Division and Federal Trade Commission highlight the serious consequences, for individuals and companies alike, of making false representations in government antitrust investigations. And as so always in Washington, the "cover up" can create more problems than the underlying conduct.

On April 6, 2009, a former senior executive of Bristol-Myers Squibb (BMS), Andrew Bodnar, pleaded guilty in federal district court for his role in BMS' dishonest dealings with the FTC over a patent litigation settlement between BMS and Apotex. He now faces maximum penalties of a year in prison and a $100,000 fine. If the court accepts the government's Federal Sentencing Guidelines recommendation, Mr. Bodnar will serve from zero to six months in jail. His employer, BMS, agreed in 2007 to pay a criminal fine of $1 million for filing false statements with the FTC.