Corporate Corruption News Stories

Excerpts of Key Corporate Corruption News Stories in Major Media

Below are key excerpts of revealing news articles on corporate corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

The level of nicotine that smokers typically consume per cigarette has risen 10 percent in the past six years, making it harder to quit and easier to be addicted, said a report that the Massachusetts Department of Health released on Tuesday. The study shows a steady increase in the amount of nicotine delivered to the smokers? lungs regardless of brand, with overall yields increasing 10 percent. Massachusetts is one of three states to require tobacco companies to submit information on nicotine testing to its specifications and is the sole state with data as far back as 1998. The study found that the three most popular brands with young smokers, Marlboro, Newport and Camel, delivered significantly more nicotine than they did six years ago. Nicotine consumed in Kool, a popular menthol brand, rose 20 percent.

A federal judge ruled yesterday that tobacco companies have violated civil racketeering laws, concluding that cigarette makers conspired for decades to deceive the public about the dangers of their product. But U.S. District Judge Gladys Kessler said that under a 2005 appellate court ruling, she could not impose billions of dollars in penalties that had been sought by the Justice Department in its civil racketeering suit. In the opinion...Kessler wrote that there is "overwhelming evidence" [that the industry] conspired to violate, and indeed violated, federal racketeering laws. "In short," she wrote, "defendants have marketed and sold their lethal product with zeal, with deception, with a single-minded focus on their financial success, and without regard for the human tragedy or social costs that success exacted. Over the course of more than 50 years, defendants lied, misrepresented and deceived the American public, including smokers and the young people...about the devastating health effects of smoking and environmental tobacco smoke." Kessler added that the companies "suppressed research, they destroyed documents, they manipulated the use of nicotine so as to increase and perpetuate addiction...and they abused the legal system in order to achieve their goal -- to make money." The Justice Department lawsuit originally sought $280 billion. But the U.S. Court of Appeals [ruled] a company could not be forced to turn over past profits as a way of preventing future misconduct. The Justice Department subsequently proposed a $130 billion penalty to pay for anti-smoking programs, but...it scaled that back to a total of $14 billion.

Medicare's drug benefit has given a shot in the arm to pharmaceutical companies and insurers, whose revenue is climbing thanks to government subsidies for prescription medicine. What's happened so far: Drugmakers including GlaxoSmithKline and Pfizer reported higher-than-expected sales and profit in the second quarter, with some of the momentum coming from Medicare. Meanwhile, membership rolls of big insurers, including UnitedHealth Group and Humana, are mushrooming as Medicare beneficiaries sign up for drug plans. Drug companies -- which successfully thwarted price-control attempts -- are reaping the rewards of more seniors and disabled people getting access to their medications. British drugmaker GlaxoSmithKline's second-quarter net income grew 14 percent over the same quarter last year due in part to strong Medicare drug sales. Merck & Co., Schering Plough, Wyeth, Roche and Pfizer ... all exceeded analysts' expectations, reflecting sales boosts from the program. In the first three months of the benefit, brand-name drug prices rose 4 percent, according to a report from the AARP. WellPoint Inc., the nation's largest insurer, reported second-quarter profit gains of 34 percent. UnitedHealth ... posted quarterly profit gains of 26 percent. Humana reported earlier this week its second-quarter profit increased 9.9 percent and revenue jumped 52 percent over the same quarter last year, due in large part to a surge in Medicare membership. The insurer expects annual revenue to grow by 50 percent.

Note: This article fails to mention who pays for all these profits -- our tax dollars. To understand the degree of corruption in the pharmaceutical industry, read a two-page summary by one of the most respected MDs in the U.S. at http://www.WantToKnow.info/healthcoverup

Several small, independent automakers are juicing up electric cars. Among the companies trying to lead the charge: Tesla. Tesla Motors...is taking orders for a $100,000 electric high-performance sports car...billed as capable of a Ferrari-like zero to 60 mph in four seconds. The car was designed in California but will be built by Lotus in Great Britain. Its sophisticated lithium-ion battery will allow a range of 250 miles on a single charge and a top speed of 130 mph. Wrightspeed...hopes to produce its own, $100,000 high-performance car within two years. It will have about a 200-mile range. Ian Wright, who heads Wrightspeed...says the new breed of electric cars could have three times the energy efficiency of gas-electric hybrids. "You can build something that's seriously fast and a lot of fun to drive." Zap. At the other end of the performance spectrum...Zap last month started selling a three-wheel electric "city car" imported from China that it says is capable of a top speed of 40 mph. Priced at $9,000, the Xebra has a range of about 40 miles. Tomberlin Group...plans to sell three versions of electric cars. Prices will range from $5,000 for E-Merge E-2 to $8,000 for the four-seat Anvil. The electric revival comes as...Who Killed the Electric Car? has started playing in theaters. The movie alleges that big automakers, oil companies and the government sank promising electric-car technology. The film singles out General Motors for...having created a futuristic electric car that became a Hollywood enviro-darling. When leases ran out, GM collected its Saturn EV1s and sent them to the crusher.

Note: I've heard that Who Killed the Electric Car? is an excellent, revealing film. For lots more on why car mileage has not significantly increased since the days of the Model T (which got 25 miles to the gallon), see http://www.WantToKnow.info/050711carmileageaveragempg

As motorists continue to pay more at the gas pump, two of the nation's largest oil companies on Thursday reported second-quarter profits of nearly $18 billion. The huge profits come at a time when refiners are marking up wholesale gas prices to levels seen during the weeks after Hurricane Katrina, reigniting concerns about the possibility of price gouging. Exxon Mobil Corp. said Thursday that its second-quarter profits increased 36 percent to $10.36 billion, the second-largest quarterly profit ever for a U.S. publicly traded company. Royal Dutch Shell, which operates 155 gas stations in Colorado, reported earnings of $7.32 billion, up 40 percent from a year ago. Including earnings from BP and ConocoPhillips, which reported earlier this week, four of the nation's five largest oil companies netted more than $30 billion in profit during the second quarter. National gross profit margins for refiners have hovered around $21 a barrel this week, compared with about $12 a barrel a year ago. Amid outcry from lawmakers about its profits, the oil industry this week paid for advertisements in 14 newspapers - including The Denver Post, The New York Times and The Washington Post - that insist oil companies' earnings are not exorbitant. The national average price of regular unleaded gasoline is $3 a gallon this week, according to AAA. The price would be about $2.60 a gallon, factoring in taxes and transportation and other costs, if the refiners' gross profit margin had remained at the same levels from a year ago.

Note: At the bottom of this article is an excellent, revealing graph showing the extent of profit margins for oil refiners since January 2005. Very few other major media have been willing to show the hard data in this article.

Drug companies are accused today of endangering public health through widescale marketing malpractices, ranging from covertly attempting to persuade consumers that they are ill to bribing doctors and misrepresenting the results of safety and efficacy tests on their products. In a report that charts the scale of illicit practices by drug companies in the UK and across Europe, Consumers International - the world federation of consumer organisations - says people are not being given facts about the medicines they take because the companies hide the marketing tactics on which they spend billions. "Irresponsible marketing practices form a serious, persistent and widespread problem among the entire pharmaceutical industry," says the report, which analyses the conduct of 20 of the biggest companies. Scandals such as the withdrawal of Vioxx ... show that unethical drug promotion is a consumer concern. Merck withdrew the drug in September 2004, but allegedly knew it could increase the chances of heart attacks and strokes from 2000 and has been accused of manipulating study results to play down the risk. More than 6,000 lawsuits have been filed against the company in the United States by people who claim they suffered heart attacks as a result of the drug. There is no room for complacency when drug companies spend twice as much on marketing as on research...but do not publish information on their drug promotion practices.

Hundreds of protesters gathered outside an exclusive California retreat for government and business leaders Saturday to challenge the right of a "ruling elite" to make policy decisions without public scrutiny. The annual Bohemian Grove retreat has attracted powerful men such as Ronald Reagan, George Bush, former Secretary of State Henry Kissinger, philanthropist David Rockefeller, former West German Chancellor Helmut Schmidt and former House Speaker Newt Gingrich. It's also become a magnet for all types of activists who increasingly use the event to network and organize their campaigns. The men who attend the Bohemian Grove retreat spend two weeks performing plays, eating gourmet camp grub, listening to speakers and power-bonding at the 2,700-acre compound near the Russian River in Sonoma County. The retreat is organized by the exclusive San Francisco-based Bohemian Club. The club and event are shrouded in mystery, much like Yale University's most-famous secret society, Skull and Bones, whose members include President George W. Bush and his presidential rival Sen. John Kerry.

Note: This article strangely has been removed from the San Francisco Chronicle website. To see it in the Internet Archive, click here. For an informative five-minute ABC news clip on the power elite gathering Bohemian Grove reported in 1981, click here. And for reliable information on the most secretive meeting of the world's elite reported by the major media, see our Bilderberg Group compilation available here.

The pharmaceutical industry is beginning to reap a windfall from a surprisingly lucrative niche market: drugs for poor people. The windfall, which by some estimates could be $2 billion or more this year, is a result of the transfer of millions of low-income people into the new Medicare Part D drug program that went into effect in January. Under that program...the prices paid by insurers, and eventually the taxpayer, for the medications given to those transferred are likely to be higher than what was paid under the federal-state Medicaid programs. Analysts expect it to generate hundreds of millions of additional dollars this year for the drug companies. Drugs tend to be cheaper under the Medicaid programs because the states are the buyers and by law they receive the lowest available prices for drugs. But in creating the federal Part D program, Congress -- in what critics saw as a sop to the drug industry -- barred the government from having a negotiating role. The windfall for the drug makers was made possible by a provision of the 2003 Medicare law that exempts Part D drugs from "best price" rebates that the drug makers have been required to give to the state Medicaid programs. Those rebates are meant to make sure that state Medicaid agencies pay no more than the best prices drug companies offer to any big commercial insurer. Now, under Part D, all sorts of price deals will be negotiated by dozens of Medicare drug plans. The prices will be reported to Medicare, but under a provision of the law pushed by industry lobbyists, they will otherwise be kept secret.

For the second time in two months, The Journal of the American Medical Association says it was misled by researchers who failed to reveal financial ties to drug companies. The latest incident, disclosed in letters to the editor and a correction in Wednesday's journal, involves a study showing that pregnant women who stop taking antidepressants risk slipping back into depression. Most of the 13 authors have financial ties to drug companies including antidepressant makers, but only two of them revealed their ties when the study was published in February.

Note: To understand how the drug companies manipulate results and even exert tremendous influence over the U.S. Congress, see http://www.WantToKnow.info/healthcoverup

A poignant new documentary asks who killed GM's promising electric car project? A new documentary released June 28 in New York and Los Angeles, appropriately titled Who Killed The Electric Car? tries in Clue-like fashion to figure out why GM pulled the plug on its EV1 electric vehicle program, which by most accounts was approaching success when the first prototype was introduced in the mid-1990s. "It was a revolutionary, modern car, requiring no gas, no oil changes, no mufflers, and rare brake maintenance," according to a synopsis of the film. In the 1990s a strict clean-air mandate introduced in California that called for zero-emission vehicles was what led GM to introduce the EV1. Eventually that California mandate got watered down from "zero" to "low" emissions, and the automakers decided to literally blow up their EV programs. GM, which leased out the EV1 cars it produced, called them all back after California changed its policy. The cars were crushed and shredded. Who were the people leasing these vehicles? Tom Hanks, Mel Gibson and Ted Danson, among others, many of whom appear in the movie and talk favourably about their electric cars. If the implications of an advance means loss of future business to a paradigm, the key players of that paradigm will lobby to kill it. The paradigm? Big oil. Similarly, the auto industry has an interest in perpetuating the manufacture of vehicles that require routine, costly maintenance.

Note: For more information and showing times on the highly revealing Who Killed The Electric Car, visit www.whokilledtheelectriccar.com. For even deeper information www.WantToKnow.info/newenergysources

AT&T Inc. said on Wednesday it was revising its privacy policy, explaining to customers that it owns their phone records and can hand them over to law enforcers if necessary. The changes...come at a time when AT&T and other phone companies face lawsuits claiming they aided a U.S. government domestic spying program by giving the National Security Agency call records of millions of customers without their permission. The new policy, unlike the old one, spells out the fact that AT&T...customer information constitutes "business records that are owned by AT&T. As such, AT&T may disclose such records to protect its legitimate business interests, safeguard others, or respond to legal process." The earlier policy had simply said that...the company could share customer information to "respond to subpoenas, court orders or other legal process, to the extent required and/or permitted by law." Under the new policy...the company also said that it would track viewing information for customers of a television service it is developing in order to help it make recommendations to customers based on their viewing habits. It also said that before customers use its services they must agree to the policy, an element that was not in its previous guidelines.

Chief executive officers in the United States earned 262 times the pay of an average worker in 2005. In fact, a CEO earned more in one workday than an average worker earned in 52 weeks, said the Economic Policy Institute in Washington, D.C. The typical worker's compensation averaged just under $42,000 for the year, while the average CEO brought home almost $11 million. In 1965, U.S. CEOs at major companies earned 24 times a worker's pay. In recent years, compensation has been a hot issue with shareholders who have been bombarded with news stories about chief executives who are given multimillion dollar bonus and pay packages even if shares have declined. The chief executives of 11 of the largest companies were awarded a total of $865 million in pay in the last two years, even as they presided over a total loss of $640 billion in shareholder value, a recent study from governance firm the Corporate Library, found.

Dozens of members of the Bush administration's domestic-security team...are collecting bigger paychecks in different roles: working on behalf of companies that sell security products, many directly to the federal agencies the officials once helped run. At least 90 officials at the Department of Homeland Security or the White House Office of Homeland Security...are executives, consultants or lobbyists for companies that collectively do billions of dollars' worth of domestic-security business. Former Homeland Security Secretary Tom Ridge...stands to profit now that Savi Technology, a maker of radio-frequency-identification equipment that the department pushed while he was secretary, is being bought by Lockheed Martin. He was appointed to the Savi board three months after resigning from the department. Former Homeland Security undersecretary Asa Hutchinson...the biggest potential for profit among Hutchinson's ventures appears to come from his role as an investor in Fortress America Acquisition. Hutchinson, before the [company's] stock was sold publicly, bought 200,000 shares for $25,000. At Friday's trading price the stock was worth more than $1.2 million. More than two-thirds of the department's most senior executives in its first years have moved through the revolving door. Federal law prohibits senior executive-branch officials from lobbying former government colleagues or subordinates for at least a year after leaving public service. But by exploiting loopholes in the law...it is often easy for former officials to do just that.

Ottawa. On the outskirts of the nation's capital, a tony high-rise hotel beside a golf course is hosting the annual meeting for one of the world's most secretive and powerful societies. They're called the Bilderberg group. Those who follow the Bilderberg group say it got Europe to adopt a common currency, got Bill Clinton elected after he agreed to support NAFTA, and is spending this week deciding what to do about high oil prices and that pesky fundamentalist president of Iran. The Bilderberg group is a half-century-old organization comprising about 130 of the world's wealthiest and most powerful people. They don't have a website. Bilderberg says the privacy of its meetings helps encourage freewheeling discussion. An unsigned press release...confirmed this year's meeting would deal with energy issues, Iran, the Middle East, terrorism, immigration, Russia, European-American relations and Asia. The 2006 group includes David Rockefeller, Henry Kissinger, Queen Beatrix of Holland, New York Gov. George Pataki, the heads of Coca-Cola, Credit Suisse, the Royal Bank of Canada, cabinet ministers from Spain, Greece and a number of media moguls. The group also includes a pair of prominent figures involved in planning the U.S. invasion of Iraq -- Richard Perle and Ahmad Chalabi. Fellow White House power-players Donald Rumsfeld and Paul Wolfowitz, now head of the World Bank, have spoken to the group in the past. The prime ministers of Britain and Canada -- Tony Blair and Stephen Harper -- have addressed the group before.

Note: For two excellent articles from BBC describing this incredibly powerful, highly secretive group of elites:
http://www.WantToKnow.info/051115secretsocietiesbilderberg

In Northern California's Humboldt County, voters decided by a 55-45 margin that corporations do not have the same rights...as citizens when it comes to participating in local political campaigns. Until Tuesday in Humboldt County, corporations were able to claim citizenship rights, as they do elsewhere in the United States. With the passage of Measure T...voters have signaled that they want out-of-town corporations barred from meddling in local elections. The "Yes on T" campaign was rooted in regard for the American experiment, from...references to Tuesday's election as a modern-day "Boston Tea Party," to the quote from Thomas Jefferson: "I hope we shall crush in its birth the aristocracy of our monied corporations which dare already to challenge our government." Just as Jefferson and his contemporaries were angered by dominance of the affairs of the American colonies by King George III and the British business combines...so Humboldt County residents were angered by the attempts of outside corporate interests to dominate local politics. Humboldt County residents...put Measure T on the ballot, declaring, "Our Founding Fathers never intended corporations to have this kind of power." Let us hope that the spirit of '76 prevailed Tuesday in Humboldt County will spread until that day when American democracy is guided by the will of the people rather than the campaign contribution checks of the corporations that are the rampaging "empires" of our age.

Just how far will corporate lobbyists go to tilt governmental decisions in their favor? Last fall, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the Clean Air Act does not require regulating carbon dioxide emissions that are heating up the planet at an unprecedented rate. It turns out that two of the jurists who helped decide the case -- Chief Judge Douglas H. Ginsburg and Judge David B. Sentelle -- attended a six-day global warming seminar at Yellowstone National Park sponsored by a free-market foundation and featuring presentations from companies with a clear financial interest in limiting regulation. Exxon Mobil Corp. and other large businesses contribute to conservative think tanks to help "educate" federal judges through seminars like the one at Yellowstone. The Code of Conduct for federal judges does not prohibit attending such seminars -- as long as participation does not "cast reasonable doubt on the capacity to decide impartially issues that may come before them." Leaders of Congress and the federal courts seem to recognize that the federal judiciary ought to be out of bounds for lobbyists. Judges are appointed for life, and allowing insider access threatens the integrity of the one branch of government that should stand above politics. Court cases must be won by argument, not by influence, and that means putting a stop to judicial junkets that give one side of the debate an unfair advantage.

Shareholders of Exxon Mobil Corp., whose departing chief executive got a $357 million retirement package, overwhelmingly rejected resolutions to rein in compensation at the company's annual meeting yesterday. Chairman and Chief Executive Officer Rex W. Tillerson said predecessor Lee Raymond deserved a $357 million retirement package that he received in January because he delivered record profits.

Note: So price gouging at the gas pumps brings record oil profits and one of the CEO's responsible gets hundreds of millions of dollars as a retirement gift. What kind of message does that send? Why didn't other major newspapers pick up this little "detail."

The American Diabetes Association...privately enlisted an Eli Lilly & Co. executive to chart its growth strategy. The National Alliance on Mental Illness...lobbies for treatment programs that also benefit its drug-company donors. The National Gaucher Foundation...gets nearly all its revenue from one drugmaker, Genzyme Corp. Many patient groups and drug companies maintain close, multimillion-dollar relationships while disclosing limited or no details about the ties. An Inquirer examination of six groups, each a leading advocate for patients in a disease area, found that the groups rarely disclose such ties when commenting or lobbying about donors' drugs. Combined, the six received at least $29 million from drug companies last year. The amount ranged from 2 percent to 7 percent of revenue at the Arthritis Foundation, to 89 percent to 91 percent at the much smaller National Gaucher Foundation. The funding usually comes from the companies' marketing or sales divisions, not charity offices. Grants often rise with promotional spending as a drug hits the market and fall when sales ebb. Donations from Merck and Pfizer Inc. to the Arthritis Foundation more than doubled, to at least $1.65 million combined, in 2000 as they launched Vioxx and Celebrex. Merck explicitly wove the foundation into sales strategies. In 2000-2001, the American Diabetes Association did not disclose an unusual gift from Lilly: a lent executive, Emerson "Randy" Hall Jr., who moved into its Alexandria, Va., headquarters and coached it on growth strategies, all paid by Lilly.

Note: If you want to understand how the huge pharmaceutical industry influences what you know about their drugs, this article is a must read. You may first want to read a riveting two-page summary of an exposé by the former editor-in-chief of the New England Journal of Medicine, who details major collusion and corruption in the pharmaceutical industry at http://www.WantToKnow.info/healthcoverup

Imagine the dilemma of having so much cash in your bank account that you didn't know what to do with it. This pipe dream for the average American is now reality for the country's biggest corporations. The industrial companies that make up the Standard & Poor's 500 index...have a staggering $643 billion in cash and equivalents. "We're in a time that is out of whack with all historical numbers," said Howard Silverblatt, equity market analyst at Standard & Poor's. "People are demanding why corporations need so much cash, what are they going to do with it?" Companies began propping up their reserves through 16 straight quarters of double-digit profit growth. Leading the pack with the most cash is Exxon Mobil Corp., which has about $36.55 billion on its balance sheet. That amount is nearly equal to its 2005 profit of $36.13 billion, the highest ever for a U.S. company. Some results of the cash riches: An unprecedented $500 billion of stock buybacks. Last year, ExxonMobil spent $18.2 billion buying its shares. One of the biggest avenues in which companies have spent this excess money has been through mergers and acquisitions. Some 75.4 percent of all deals under $1 billion so far this year were done purely with cash.

Note: A Google search reveals that though this Associated Press article was widely picked up by medium-sized newspapers in the U.S., none of the top 10 papers picked it up. The Seattle newspaper above also removed the word "huge" from the title after it was published. $36 billion means that more than $100 for every man, woman, and child in the U.S. went into ExxonMobil profits last year, and another $100 for each person went into their cash reserves. If ExxonMobil and other oil companies have so much extra cash, why are gas prices so high? It's also quite interesting that the advertisements of these mega-corporations continually invite us to go into debt buying their products, while their profits and cash reserves grow ever higher.

Drug companies fund a growing number of the studies in leading psychiatric journals, and drugs fare much better in these company-funded studies than in trials done independently or by competitors, researchers reported Wednesday. About 57% of published studies were paid for by drug companies in 2002, compared with 25% in 1992, says psychiatrist Igor Galynker of Beth Israel Medical Center in New York City. His team looked at clinical research in four influential journals: American Journal of Psychiatry, Archives of General Psychiatry, Journal of Clinical Psychiatry and Journal of Clinical Psychopharmacology. In the report, released at the American Psychiatric Association meeting in Toronto, reviewers did not know who paid for the studies they evaluated, Galynker says. There were favorable outcomes for a medication in about: eight out of 10 studies paid for by the company that makes the drug; five out of 10 studies done with no industry support; three out of 10 studies done by competitors of the firm making the drug. As drug companies increasingly fund research that yields favorable outcomes for their drugs, there may be a built-in bias because journals are reluctant to publish studies with negative or inconclusive findings.

Note: To learn more about the astonishing profits and power of the major drug companies, read our concise summary of a major insider's research at http://www.WantToKnow.info/healthcoverup

Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.