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THE PHARMA LAW BLOG

Peter Rost, M.D., is a former Pfizer Marketing Vice President providing services as an expert witness, speaker and writer. According to Fortune "Peter Rost has become the drug industry's most annoying - and effective - online scourge." Dr. Rost is the author of "KILLER DRUG" and "THE WHISTLEBLOWER, Confessions of a Healthcare Hitman." The Pharma Law Blog is his personal blog, which is a combination of "60 Minutes" and "Saturday Night Live."

Saturday, May 24, 2008

Is the Condor my naughty twin?

Sometimes I wonder.

The Condor at Schearlings got Plowed blog somehow reminds me of me . . . he even gladly posts stats about his unusual visitors, the way I did it (until many of them started using various ways to disguise their identity, like Covington & Burling).

And he has fun with his stuff and mocks the corporate titans relentlessly.

It's something in his tone . . . almost makes me wonder if I'm going schizofrenic.

And, he writes such good stuff about Schering that I really don't have to, don't even feel I have to bother.

There is thing I really, really wonder about the Condor though. Just curiosity - what software does he use to manipulate images? He's used it to develop a good "look" for his site that is very recognizable.

If John McCain stops taking Vytorin . . . shouldn't you switch too?

John McCain's doc switched him from Vytorin . . . to generic simvastatin.

According to a pool report based on the review of the records, Mr. McCain’s cholesterol level was recorded as high in 2003, with a total cholesterol of 226 and an LDL, or harmful cholesterol, of 139, and an HDL, or good cholesterol, of 35.

Mr. McCain was put on Vytorin, a medication which worked in reducing his cholesterol in subsequent checks, but he was taken off earlier this year in the wake of reports that the drug may not work and might even speed up the growth of fatty plaques in the arteries.

Mr. McCain was instead put on simvastatin, which the records said did not reduce his cholesterol by as much but was deemed “acceptable.”

Friday, May 23, 2008

Rost vs. Pfizer qui tam in The Pink Sheet




May 19, 2008
Volume 70 Number 020 page 23

Whistleblower Suits Alleging Off-label Promotion Need Not Be Specific – Gov’t


The U.S. government says whistleblowers do not need to provide specific details of misconduct in claiming a company marketed a drug for an unapproved use.

The government offered its interpretation of the laws governing off-label lawsuits in the case Peter Rost, former vice president of marketing at Pharmacia & Upjohn, brought against Pfizer over marketing of the human growth hormone Genotropin. While the government has declined to intervene in the litigation, it said it was interested in seeing the correct application of the law in this and other cases.

In a "statement of interest" filed with the U.S. District Court of the District of Massachusetts May 12, Acting Assistant Attorney General Gregory Katsas said the False Claims Act "should be read broadly to reach all fraudulent attempts to cause the government to pay out sums of money."

"I think the Department of Justice's statement is highly significant not only because it supports Dr. Rost, but also because it demonstrates that there are very important public policy issues at stake here," said Rost's attorney Mark Labaton, of Kreindler & Kreindler.

The government's filing could have an impact on other cases brought under the False Claims Act. Under this law, private individuals file qui tam, or whistleblower, suits on behalf of the government. It is the government's primary tool in pursuing health care fraud. There are about 150 pending whistleblower suits (1"The Pink Sheet," March 31, 2008, p. 15).

Rost claims Pharmacia - which was acquired by Pfizer in 2003 - fraudulently promoted Genotropin to treat short children and aging adults. The Massachusetts district court dismissed the suit on grounds that it failed to specify details of the alleged fraud. But in November the U.S. Court of Appeals for the First Circuit ruled that Rost could amend his complaint to include such information (2"The Pink Sheet," Nov. 26, 2007, In Brief).

Gaining Standing On "Short Stature" Claims

Rost submitted a revised complaint in January citing more than 200 Medicaid reimbursement claims for Genotropin with diagnosis codes indicating the treatment was for "short stature." The claims, covering the period 2001 to 2006, were for patients in Indiana.

In a motion to dismiss the complaint Pfizer said Rost "does not identify which physicians allegedly submitted these claims nor plead any facts suggesting that Pharmacia promoted Genotropin to these doctors at all, much less for an off-label use."

Pfizer also contends that "short stature" was listed as a therapeutic use in the drug compendium DRUGDEX even before the alleged Medicaid claims were filed and thus the claims were for a "medically accepted indication" and reimbursable under Medicaid.

Compendium Listing Is Not Enough

But the government dismisses this defense. "First, the fact that an off-label use is listed in a statutorily recognized compendium does not necessarily mean that the use is supported by the compendium citation, so that, in some circumstances, a use that is listed may not qualify as a 'medically accepted indication' that is covered by law," it states.

"Second, even if an off-label use is supported by a citation in a compendium, a claim nevertheless may be false for any other number of reasons (if sufficiently pled) and thus present an alternative ground for FCA liability."

The government would also give Rost leeway in citing specific claims of fraud. Under the Federal Rules of Civil Procedure a party alleging fraud "must state with particularity the circumstances constituting fraud."

"The identification of specific false claims is not an absolute prerequisite to satisfying the particularity requirement" in False Claims Act cases, the government states. "So long as the complaint as a whole is sufficiently particular to strengthen the inference of fraud beyond possibility, a court may conclude, as this one has in other cases, that Rule 9 (b) is satisfied."

Rost's attorney Labaton said this means that an individual filing an FCA suit does not need to provide the actual claim at the initial pleading to get discovery and get the case off the ground.

The government further states that a complaint does not have to allege that the defendants themselves made a false statement. Defendants "may be liable if they caused a third party to make a false statement to get a false claim paid," the government says.

DoJ Settlement Excludes Short Stature

Last year Pharmacia pled guilty to off-label promotion and receiving kickbacks from a pharmacy benefit manager for a contract to distribute Genotropin in a $34.7 million settlement with the U.S. Attorney's Office in Boston (3"The Pink Sheet," April 9, 2007, p. 3). Rost cites the settlement in his complaint, saying it resulted from the company's illegal marketing campaign.

But in a court filing in support of its motion to dismiss the complaint, Pfizer says the settlement with DoJ related to the promotion of Genotropin for anti-aging use by adults. "The settlement documents did not refer to the False Claims Act, to any pediatric use of Genotropin, or to use for 'short stature,'" Pfizer states.

Pfizer has faced other allegations of fraudulently promoting unapproved uses of a drug. In 2004 it paid $430 million to settle a Department of Justice investigation of off-label marketing of its epilepsy drug Neurontin (gabapentin). A class action is pending before the Massachusetts district court in which plaintiffs seek reimbursement for the off-label promotion.

Judge Patti Saris ruled last year that off-label prescriptions of Neurontin were approximately 13 percent of total scripts prior to the company's off-label promotion of the drug for pain, migraine and psychiatric use and 90 percent of total scripts after the off-label campaign.

Rost's amended complaint, in which he alleges more than one-fourth of Genotropin prescriptions to children were for unapproved uses, is before Judge Saris.

The Washington Legal Foundation filed an amicus brief May 1 in support of Pfizer's motion to dismiss Rost's amended complaint. WLF said if the suit is allowed to proceed it "could harm public health by reducing public knowledge regarding beneficial off-label uses of FDA-approved products."

- Brenda Sandburg (b.sandburg@elsevier.com)

DTC advertising



Hat tip: Senior law enforcement official.

The House Energy and Commerce Committee goes after Jeff Kindler in strongly worded letter.

The Committee on Energy and Commerce is going after Pfizer CEO Jeff Kindler in a strongly worded letter.

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My article about flood of suicide and traffic accidents related to Pfizer's anti-smoking pill Chantix made front cover news in Sweden.

As some of you may recall, I spend some of my time writing for newspapers overseas . . . where the products is called Champix, not Chantix.

You can read the article in Swedish or translated with Google translate to broken English.

(The latter option provided as a courtesy to Pfizer.)

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Thursday, May 22, 2008

Humankind - a bunch of monkeys

This video explains why the world looks the way it does. Brilliant.

Temptation averted.



The one thing that strikes me . . . those religious fanatics must be really, really, horny.

Why else would they've come up with any of this? AND they get to have four wives! That's just here on earth. In heaven they get 72 virgins, if they've been really good. That's a real horny religion.

By the way, compare this with the fundamentalist polygamist Mormons in Texas who also have tons of wifes and a gazillion kids each . . . one old goat for every five women. And the young men get kicked out so the old guys can supply themselves with young women without competition.

Let's face it, the problem with religious fanatics . . . they're just too horny for their own good.

Peekabo!

Wednesday, May 21, 2008

Latest news from Fred Hassan's office



Hat tip: REDACTED.

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Our Daily Meds by Melody Petersen

A few months back Melody Petersen's publisher Farrar, Straus and Giroux sent me a review copy of her new book, "Our Daily Meds" and it's taken a bit longer than I thought to finish this 432-page tome.

Others have clearly been faster; the book as been top 100 on Amazon for quite some time, and even New York Times has done a book review, so I'm really, really late.

Anyway, Melody Petersen wrote about the drug industry for four years when she was a reporter at the New York Times. I actually met her back in 2003, when she wrote the first major story on me. And I was just as surprised as everyone else when she suddenly quit the Times job. Turns out she followed her husband to Los Angeles, where he landed a job for LA Times. Melody, she wrote a book, and we are all very fortunate that's how she spent her time.

"Our Daily Meds" picks up where Marcia Angell left off with her book "The truth about the drug companies."

"Our Daily Meds" is written like a gigantic and very long New York Times article. It explores the misdeeds of the drug industry, focusing on personal stories in Melody's home state, Iowa.

In that state, drug companies "pitch drugs with video games and soft cuddly toys for children; publicize them in churches and subways, at NASCAR races and state fairs."

"Our Daily Meds" becomes Petersen's personal journey researching the drug industry and ends unequivocally with this statement in her last chapter: "No one knows how many Americans are buried without their families knowing the were killed by prescription drugs."

She bases this on the fact that out of Iowa’s 27,000 death certificates a year there were only five deaths recorded as adverse reactions to prescription drugs in 2002. Melody claims this is due to a massive cover-up.

"Much of the blame must be put on the nation's physicians, who have enjoyed the industry's gifts as their profession has been corrupted and patients have suffered," according to Melody.

Melody uses detailed real-life stories to create heart-warming accounts of people affected by drug industry marketing. And she uses hilarious quotes out of that marketing, such as this one: "Pace yourself" the Prislosec guide warned. "If you just polished off a funnel cake, don't immediately chase it with a chili-cheese dog."

That's drug marketing--in Iowa.

If you loved Angell's book, you will most certainly enjoy this one too . . .

GlaxoSmithKline Sweden changes Lamictal package insert and marketing after article in which Dr. Rost supports critics.

Here's the first article, Så luras vi att tro att vi är sjuka, and the second article, Backar efter avslöjandet, in which Glaxo does a mea culpa in one of Sweden's largest newspapers, Experessen.

If you want to read in broken English, use Google translate:

Article 1

Article 2

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Tuesday, May 20, 2008

John McCain vs. John McCain



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Life as a Lilly sales rep: Screwed no matter what you do.

Below is the real-life story of a Lilly rep who was recently terminated (names have been changed). Those of you who have read "Hard Sell" by Jamie Ready will recognize much in this tale:

Samantha was my District Manager from January 2005 through November 15, 2007. Samantha was a brand new manager when she took over the Camden District in 05', which was a new team all-together. Let me also state, Samantha never hired me, nor was she my original manager on September 19, 2005 when I began employment with Lilly. I was hired by the Northeast Area Director, as a Senior Sales Representative. This would be a point of contention with Samantha in the future, as she did not believe I could be leveled as such. The sales force was realigned for 2006 and Samantha became my District Manager.

During most of 2006, Samantha and I had a decent working relationship and I grew my sales number to the best of my ability. We didn't have any significant conflicts, but we were not always on the same page as far as how to make the sale to a physician. We had even talked about the possibilities of me moving to the corporate headquarters to become an associate and then a DM. She had me participate in a teleconference for perspective home office employees to hear all about the opportunity.

We agreed that September of 2007 would be the target date for the move. On an October field ride (a day in the field with your manager) I expressed I was anxious about how fast one of our products was increasing share in the territory and I was bothered and frustrated by this. I felt I could share my concerns with my manager, but this would soon be used against me. Unbeknownst to me, during 2006, LT was constantly tormenting an executive rep on our team about her sales style and abilities, which I would learn later in 2007. There was a pattern developing and would progressively get worse.

Before I continue with my story I want to point out another aspect to her poor ability to keep and promote quality, tenured reps. During Samantha's time as the DM, seven reps left her team, six with significant tenure in the industry. The first two left almost immediately when she began, one to another company, the other to another district upon her request. This particular rep would later say Samantha made racist comments. Specifically, "I can't move to Voorhees, there are too many Jews." This was when Samantha was deciding where to live when she moved from New York. The rep I am referring to is Jewish.

Two others moved different districts and three were fired, including myself. One was let go based on performance and was probably valid, yet Samantha made little attempt to coach and motivate to this persons strengths. The other one is more important to the events that led to my termination.

My colleague Alexis was a rep with Lilly for six years and an important part of our district. She was an excellent rep and her sales numbers over the years reflected this. Alexis was seen as the unofficial DM within our district and a real leader. This intimidated Samantha. Alexis went on maternity leave in December 2006. She arrived back on a Monday in early May and was terminated by Samantha that Friday. Alexis did make a product samples error back in 06' and she had contacted samples accountability before she went on maternity leave to address the error. Sampling mistakes are common and although serious, probation is usually the first warning.

On the Friday of the event, Samantha called Alexis to come to a hotel to meet about the error and HR would be on the phone. During their meeting, HR told Alexis her sampling mistake would cost her six months probation and supported this with documentation. After which, Samantha asked Alexis leave the room, a few minutes later she called her in to the room and told her she was terminated based on the sampling error and other information Samantha had collected, such as expense reports Alexis had submitted months earlier and other minor infractions that were never previously addressed to her. Samantha had spent months putting this together and it turns out to be very similar to how I went down as well. Alexis has a four year old and an infant, obviously Samantha was aware of the effects this would have on Alexis's family... yet put a plan in place while Alexis was out to have her fired. The worst part is she waited until the baby was born, instead of when she was pregnant. I'm sure for fear there could be a suit against Lilly for firing a pregnant woman.

After Alexis was fired, she set her sights on me, but let's go back to January of 2007. We had a district meeting at a diner. The meeting surrounded the team being more open and excited during our regional meetings, where often times the Northeast director or other higher-ups would attend our classroom sessions. Samantha wanted us to be like some other teams. When she asked what can be done about this, no one really would answer. I have heard from several colleagues who state that this was the real turning point in our relationship. I stated we took a queue from her. She acted very tight, not loose and overly business like when these people were in attendance. I said if she were more relaxed, so would we. That was it. From that day forward it was all down hill.

Two weeks later we rode together in the field. I told Samantha about an office where the physician was upset about my asking him why he chose another drug instead of mine. So again I was confiding in her about what to do and my frustrations with some physician habits to use generics or an older competitor, again this would come back to haunt me. On a call later that day, I told her exactly what my plan was for the call to a physician. His wife was on the medication we sold and I was going to ask him how she was doing. Long story short, she was uncomfortable during the call (I have a field note describing what she felt about the situation) and proceeded to yell and scream at me later before another call. That Friday, I was given a verbal warning (which was actually in writing) expressing that I was not being professional and overly aggressive with my doctors and I had a bad attitude with them. None of which is anywhere near the truth and I could go to any office right now and the physician would say I was pleasant, helpful and one of their best reps. This warning was just the beginning.

In any event, as the year progressed, my interactions with her became worse. My field visit notes were inconsistent. One time I was doing what she asked, the next I wasn't, the next I was and then the next I never had done anything she requested. She would say my sales skills were holding me back, yet I was the number one primary care territory every quarter that she was my boss. It got to a point where my peers were wondering why she never acknowledged any of my accomplishments and how mean and nasty she was to me at all times. How she was verbally aggressive and how anything I said was completely dismissed by her, or corrected. She frequently spoke negatively about me to my peers. This was also a pattern of hers. She always had negative things to say about another particular rep from the Atlantic City territory.
Finally, we rode together on Monday October 22, 2007. Again I told her my intentions for the day and proceeded with my plan. I actually felt it was a productive day considering a Monday with your manager type of day.

Physicians are not usually happy to see a lot of reps and Mondays is typically the worst day to be with your manager. Of course these were the only days Samantha usually wanted to ride with me. I thought things were going better with her as well until we stopped. She proceeded to tell me I needed to back to sales school, my sales ability was not good and we have never been on the same page about anything. After collecting some info from my peers about what she had said about me in the past and feeling worried that she was out to have me fired I contacted Lilly HR on Friday October 26, 2007.

I spoke with HR. I told them that I was afraid for my job and my manager was discriminating against me and wanted me fired. I recounted the pattern of her behavior, how she fired Alexis based on her tenure, any reps with tenure would leave, she wouldn't hire any tenured industry reps to replace them because as she told Alexis's old counterpart, "They were uncoachable." I talked about her erratic behavior and yelling screaming outbursts. How she offended some of my doctors and many told me never to bring her back. My team was also told the same thing. I explained some of her racist comments and how anyone with tenure always had issues with her. I told her how she talked about me negatively to my peers about me and some of the things she said were degrading and completely unprofessional. She would often swear when talking about me. One time in particular I was standing up for our team again and said that all of us (District mates) didn't have to worry about a particular metric the company was evaluating us on because we were all strong sales people. She told David, from the Camden team, "What the FUCK kind of comment was that and who the FUCK did I think I was! To Dave's credit , he defended me as to say I was just trying to keep our spirits up.

I told HR that my fate would be like Alexis's if she did not help. HR's advice was to work things out with her and sit down to talk about it. I never got the opportunity to do that. For the next two weeks, Samantha would not return my phone calls, or if she did, there would be some reason we could not meet. I even left her a message extending an olive branch in hopes to make amends and start fresh. I was conceding all power back to her. Finally on Monday October 11, 2007 she left me a voicemail saying we would meet at a particular hotel to discuss some things. The next morning I received another v-mail stating I should bring my lap top and HR would be on the phone with us at the hotel. I knew it was the kiss of death. I called HR that morning and begged for their protection. I reiterated the fact that I knew she wanted me gone and she would find any reason to do so. HR said she would pass on everything we talked about to the HR person who would be on the phone, but she never did.

The reason I was fired is this... I falsified calls to physicians, or I had too many detail only calls. I say this next part without hesitation, yes I did fake calls to some physicians on my call list to meet a frequency requirement of the company. So many calls to certain docs per quarter, whether you can see them or not. We were told by Samantha, "Make frequency work for you", WINK, WINK. We all new what that meant. Our district was always floundering in second to last place and she was on the hot seat with our Regional Director. SHE TOLD US TO LIE TO MAKE HERSELF LOOK BETTER.

She said "In order for us to look good, lets control what we can control by meeting frequency and calls per day." It is standard in this industry to have detail only calls and if I was fired for doing, so should 99.9% of the reps in the company and everyone in my district... especially if they had all of their calls scrutinized and Samantha knows this. Even though it is known by everyone in the industry and everyone in my District did it because we had talked about it... she found a way to fire me for it. The company required 30% samples to detail only calls, I made at least 7 to 8 sample calls per day out of the nine calls overall we were required to make. Basically, Samantha took the time to go back in my call history, knew which docs were "no see" and called their offices to learn if I was there on a certain day I recorded as a call back in the summer. She had about nine or ten different doctors she questioned me on.

My point is, if I wasn't being targeted to be terminated, why didn't she look at everyone's records. I know for a fact that everyone on our team puts in detail only calls when they don't see a doctor, so they can keep up with frequency and hopefully keep the manager off their back. I did not throw anyone under the bus during the meeting and would not say who else did this as well. It wasn't like I was forging signatures, or selling my samples. My territory went from 508 out of 510 in November 05' to as low as 275 out of 510 in January 07'. Coincidentally, that same month my product Cymbalta was 118% of goal and yet somehow I was upsetting all my doctors and I needed a verbal warning. No one on my team ever reached that number,... EVER!!! I have plenty of other documentation to support my success as a rep in the territory. My peers would also support me as a great rep and an asset to the company.

So they took my car and all my stuff from me on the spot and my pregnant wife and 4 year old twins had to pick me up, one week before Thanksgiving. I had a conversation with the HR person who was on the phone with us and he said there would be a formal investigation into Samantha as a manager. I have yet to receive a letter regarding the outcome and according to my friends from my old team, she is as nasty as ever. Nothing has or will happen to her.

My manager very, very aware that I was the sole provider for my family, that I struggled to make ends-meat and I was always worried about money. She knew my wife was pregnant and I had 4 year old twins..., yet she still had her number one primary care sales rep fired on a technicality based solely on her own insecurity. It was not performance..., it was personal.

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Somebody, PLEASE help Schering-Plough

Susan Ellen Wolf, Corporate Secretary, Vice President Governance and Associate General Counsel of Schering-Plough has been posting messages on numerous pharma blogs (Pharmalot, WSJ, Forbes) after Forbes raised the question if Hassan should return some of the money he made a SP.

Here are a few of her statements:

Fred Hassan has a distinguished track record as a CEO who is virtually synonymous with integrity. We see this in his actions every day.

Fred Hassan also has a proven track record as a CEO who has taken a series of some of the biggest challenges in the world of business and turned them around to the benefit of patients, shareowners and society.

We are proud to have Fred Hassan as our CEO.

Seriously, doesn't anyone at Schering-Plough realize how bad this looks?

Does anyone at Schering truly believe that this will make the company look better or help Mr. Hassan?

It's like the mother, who's son was just convicted for a crime, stating "he's really a good boy"!

Ms. Wolf is completely dependent upon Mr. Hassan for her survival and job. She can be expected to say exactly what her master tells her to say.

She is essentially a puppet--for Mr. Hassan and what he wants to communicate.

The only conclusion is that Mr. Hassan is very worried that people will ask him to return some of the money he took from Schering-Plough.

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Picture of the day

Vytorin - the ad.

Brought to you by the Condor.

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Men thinking about nothing . . .

PharmaGossip had the short version today. Here's the long one. Don't miss it!



Bonus material: Men . . . in the morning:

Monday, May 19, 2008

Caught lying?: Susan Ellen Wolf, Corporate Secretary and Vice President Governance, Schering-Plough

My, my a Vice President Governance and Associate General Counsel Schering-Plough caught spreading untruthful information?


Or is it the 2007 Schering-Plough proxy that is untruthful?


Something for the SEC?


Story on Scherlings got Plowed.

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Hope.





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The Vytorin Saga: Should Schering Plough's Chief Give Back His Bonus?

Hassan received $29.6 million in 2006, including a $19 million cash and stock bonus he is still receiving. That bonus was based largely on the Vytorin-driven increase in Schering's market cap. Though the options Hassan received are now underwater, he gets to keep his $9 million in cash, all of which would have been at risk had the stock tanked in November 2006, when Schering and Merck had intended to release ENHANCE at a medical meeting.

Study lead investigator John J. P. Kastelein of the University of Amsterdam says he would have had trouble making the deadline for the November meeting. But he believes if he had full control over the study, the results could have been presented in March 2007.

That would have put a set of cash bonuses for 2007 at risk if it had hurt the company's sales and earnings per share, potentially costing Hassan $4 million more.

In order for the 2007 bonuses to be paid, Schering had to grow sales by at least 12% and hit an earnings-per-share target of $1.10. In 2007, the company delivered sales growth of 16.8% and had earnings per share of $1.37.

Full story in Forbes.

Friday, May 16, 2008

Soar throat?


Mebucaine from Novartis can help!


China - the picture you won't see in NY Times.


Dressed to impress . . . in court

So, guess who finally showed up in public . . . ?

Thursday, May 15, 2008

Red Cross allowed to keep its . . . red cross. J&J loses suit.

A federal judge last night ruled against Johnson & Johnson in its suit to stop the American Red Cross from using the Red Cross emblem on first aid and other health and safety products sold to the public. The judge’s ruling represents a complete vindication of the right of the Red Cross charity to use its emblem or authorize others’ use of its emblem in the sale of products related to its mission. The money the Red Cross receives from the sale of these products is reinvested in its humanitarian programs and services.

“The American Red Cross is pleased that the Court has upheld our right to use our trusted emblem to provide consumers with products that help protect their families’ health and safety,” said Mary S. Elcano, Acting President and CEO of the American Red Cross. “Whenever the Red Cross emblem can be used to advance our mission – whether flying above blood donation sites, worn by relief workers, or printed on emergency first aid kits – we will continue to display it proudly,” said Elcano.

“We have said from the beginning that Johnson & Johnson’s lawsuit is meritless, and we are gratified by Judge Rakoff’s ruling in our favor. We hope J&J will work with us to bring this dispute to a prompt end so we can focus on what’s important: delivering lifesaving Red Cross services to the American people,” added Elcano.

Judge Rakoff squarely held that the Red Cross’s activities “do not violate the criminal prohibition contained in 18 U.S.C. 706. They also do not violate the Red Cross’s congressional charter or the Geneva Convention,” contrary to J&J’s claims. According to Judge Rakoff, “For over a century … [the Red Cross] has entered into a number of arrangements to use the Red Cross emblem and words in an ostensibly commercial context – including, of particular relevance here, entering into license agreements that utilize the logo.” Indeed, Judge Rakoff found that “the doubtfulness of [J&J’s] interpretation is well illustrated by the ironic fact that in 1986 J&J itself entered into a cause-marketing promotional agreement with [the Red Cross].”

Today’s ruling marks the second major victory for the Red Cross since August 2007 when J&J first brought suit against the organization and four of its licensing partners for “unlawful conduct” related to how the Red Cross uses its emblem. The first victory in the case came in November 2007 when Judge Rakoff dismissed J&J’s claim that Red Cross had promised not to engage in the sale of mission-related products.

The Red Cross has been using the Red Cross emblem since 1881 and has been selling first aid kits and other safety and health products since at least 1903. By offering these Red Cross products at retail locations, the organization is able to reach more families.

Several claims and counterclaims remain for trial in the case, but none call into question the lawfulness of the Red Cross’s use of the emblem in providing consumers with first aid and other products. The Red Cross’s use of its emblem, and its authorization of others to use it in furtherance of its mission, has been entirely vindicated.