“Complete Balderdash”

It was big news in financial and biomedical circles when the Justice Department and executives at Aegerion Pharmaceuticals announced in September a global settlement to end criminal and civil litigation over the marketing of a new cholesterol drug called Juxtapid. The feds heralded the plea deal as another sign “the government will continue to hold accountable drug companies that violate laws designed to protect the health and safety of patients.” Aegerion welcomed the deal as a necessary step to move the troubled company forward for the benefit of shareholders.

The parties entered into what is known under federal law as a “C” plea, named for the procedural rule on which it is based. A “C” plea leaves the trial judge presiding over the case with a stark choice; either accept the deal and all of its terms as negotiated by the parties . “C” pleas, in other words, take away judges’ sentencing discretion. It also deprives them, especially in cases involving corporate defendants like Aegerion.