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In this blog post, we’ll discuss Who Paid the Largest Criminal Fine in History ever. This is an interesting topic, as it raises a lot of questions about crime and punishment.
Pfizer, the Covid vaccine maker and US pharmaceutical giant, is one of several companies affected by multi-bill7ion dollars in criminal fines in recent history – but which company has paid the biggest criminal penalty ever?
As regulators around the world attempt to catch up with companies in industries such as finance, technology, healthcare, oil and more, large fines are increasingly emerging as one of the most reliable tools for giant corporations to take into account.
- In the event of the largest fraud settlement in U.S. history, Pfizer paid $2.3 billion (£1.7 billion) for false claims related to the Bextra pain drug. One of the largest criminal fines in history.
- In addition, three former TEPCO execs approved negligence eight years after the disaster, causing the company to lose £330 billion in compensation claims.
- In 2010 the Gulf of Mexico witnessed the huge marine oil spill in history – the Deepwater Horizon oil spill.
Incidental enterprises and damage led companies to spend millions and sometimes billions in criminal disasters. In particular, introducing radiation leaks to environmental disasters while pharmaceutical companies make false claims.
Gather insights on the largest criminal fines in history, including the fine paid by Pfizer. In addition, the list of companies they had to pay, and why they were issued.
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Who Paid the Largest Criminal Fine in History?
Pfizer has often been reported as paying the biggest criminal fine in history — the pharmaceutical company fell against U.S. regulators in 2009.
But notable other corporations have paid costly fines before and after Pfizer.
Here are some of the biggest criminal fines paid in history, which companies had to pay them and why.
Tepco – £330 billion
A nuclear accident in Fukushima, Japan in 2011 led to an investigation into the plant operator’s preparatory incident. Eventually, reports suggest that energy company Tokyo Electric Power (TEPCO) caused a failure to meet safety requirements or plan such an event. The independent investigation set up by Japan’s parliament said the nuclear outbreak in Fukushima was “an intense man-made disaster”.
In addition, three former TEPCO ex approved negligence eight years after the disaster, causing the company to lose £330 billion in compensation claims. The radiation leak had forced thousands of people to leave their homes, the report said. And people claimed compensation that the company paid in the largest criminal fine in history.
Most Expensive and Largest Criminal Fine in History Paid by Companies
The criminal penalty paid by TEPCO in response to its failures in relation to the Fukushima nuclear disaster is by far the largest by any company in the world. Yet other companies have recently been forced to pay billions of dollars in damages, including BP, Bank of America and Volkswagen.
BP – £47 billion
Oil company British Petroleum (BP) was fined an initial criminal fine of 2.8 billion pounds in 2012 for its central role in the Deepwater Horizon oil spill in the Gulf of Mexico, but its costly compensation process later pushed the bill to about £47 billion.
In 2010 the Gulf of Mexico witnessed the huge marine oil spill in history – the Deepwater Horizon oil spill. Additionally, the oil spill covered 60,000 square miles and plunged into the sea for four months. In addition, it is known as the most problematic industrial environmental disaster in American history. A response began to protect water, beaches, wetlands and more. However, the leak caused adverse damage to marine and wildlife habitats and industries. Reportedly, the total compensation paid by petrol company BP was over £47 billion.
It was later revealed by BuzzFeed that BP paid Mexico just $25 million in compensation for the incident.
Bank of America – £11 billion
For its role in the 2008 financial crisis, Bank of America paid £11 billion in compensation. It wasn’t the only banking institution that had to pay along with JP Morgan (£8 billion) and BNP Paribas (£6.5 billion). Similarly, the financial crisis was triggered by banks lending to people who were very unlikely to pay it back, known as subprime loans.
Volkswagen – £10 billion
Volkswagen paid £10 billion for civil and criminal penalties in 2016 due to an issue regarding emissions. The VW scandal called the cars back and re-fitted with proper emission parts. In addition, it brought into focus the environmental impact of diesel.
How Big was Pfizer’s Criminal Fine and Why did it Have to Pay?
While the £1.7 billion ($2.3 billion) criminal fine imposed against Pfizer in 2009 was significantly lower than the largest fines awarded to companies such as TEPCO, BP and Bank of America, the fine still sets a new record as the largest healthcare fraud settlement and criminal penalty at the time.
Pfizer was ordered to pay the fine by U.S. regulators after it was found to be involved in fraud by falsely promoting the now withdrawn painkiller Bextra.
The company pleaded guilty to charges of advertising the drug for ‘off-label’ purposes, which was not approved by the US Food and Drug Administration (FDA).
Pfizer pulled Bextra from the market in 2005, but promoted it for use and dosage, which the FDA specifically rejected after safety concerns over the drug.
Which Industries Pay the Largest Fines?
According to Diggity Marketing, financial services is the industry responsible for the highest penalties to date.
As of February 2021, the sector, including banks and payment providers, had altogether fined $331,558,339,161 in more than 6,000 fines.
The pharmaceutical industry lagged behind with 944 fines of over $56 billion, while the oil and gas industry came third with fines of about $45 billion.
Among the companies paying the most in fines to date, Bank of America topped the charts and JPMorgan Chase came in second – paying more than $35 billion in fines.
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Q1) How much was Pfizer’s criminal fine and why did it cost?
Ans. The criminal fine of $2.3 billion levied against Pfizer in 2009 set a new record as the largest healthcare fraud settlement and criminal fine to date.
Q2) What is the biggest criminal charge in history?
Ans. In 2012, healthcare giant GlaxoSmithKline (GSK) agreed to pay $3 billion in criminal and civil charges for unlawful promotion of drugs such as Paxil and Wellbutrin, which were not approved by the FDA.
in this article, we listed the Who paid the largest criminal fine in history. We hope that after reading this article you know Who paid the largest criminal fine. If you have any questions or suggestions for us related to this article, then you must let us know by writing it in the comments.
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