AEGiS-WSJ: Jury Finds Ex-Serono Executives Not Guilty of Bribery Charges Wall Street JournalImportant note: Information in this article was accurate in 2007. The state of the art may have changed since the publication date.
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Jury Finds Ex-Serono Executives Not Guilty of Bribery Charges

Wall Street Journal - May 3, 2007
David Armstrong, david.armstrong@wsj.com


Four former executives of Serono Inc. were found not guilty by a federal court jury of charges they offered bribes to doctors in exchange for writing prescriptions for an AIDS drug sold by the company.

The executives, who all faced charges of criminal conspiracy, are John Bruens of San Diego; Mary Stewart of North Andover, Mass.; Melissa Vaughn of Louisville, Colo., and Marc Sirockman of Flemington, N.J.

Attorney Adam Hoffinger, who represented Ms. Vaughn, said the jury returned the not guilty verdicts after deliberating for three hours. "The speed of the verdict confirms what we believed: that this case shouldn't have been charged in first case," he said. A spokeswoman for the U.S. Attorney's office in Boston, which prosecuted the case, did not have an immediate comment.

The indictment alleged that the executives were part of a scheme to offer bribes to doctors to get them to prescribe Serono's AIDS-wasting drug, Serostim. The alleged conspiracy was hatched, according to the indictment, to bolster disappointing sales of the product. Among the alleged inducements offered to doctors was an all-expenses paid trip to Cannes, France, in 1999.

Separately, a unit of Serono pleaded guilty in 2005 to two counts of conspiracy and agreed to pay a $704 million fine to resolve criminal and civil charges related to the marketing of Serostim.
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