As we had earlier noted pre-acquisition Organon is involved in what was once a criminal investigation out of Boston, and has now settled into a civil False Claims Act/Qui Tam action captioned US v. Organon, Inc. (Case No. 07-2690, US Dist. Ct. NJ), nominally brought by Dr. Jeffrey Feldstein, MD (a former Organon scientist) against Organon, and its affiliates, for allegedly deceiving the public and the FDA about one of its anesthesia drugs, then a new drug called Raplon. That drug was voluntarily removed from the market in March of 2001, after the deaths of five patients. This case — like so many others involving Schering-Plough — is pending before federal District Court Judge Dennis M. Cavanaugh.
Arent Fox represents Schering-Plough in this matter, as Schering acquired these Organon businesses as of November 16, 2007. Arent Fox, on behalf of Schering, has been granted until June 27, 2008 to file a substantive answer to the claims of Dr. Feldstein.
That filing may well prove to be rather illuminating, on a host of fronts — for it may offer a glimpse into the amounts, and kinds, of due diligence Schering (and its lawyers) chose to undertake, prior to acquiring Organon, as well as some sense of how seriously present management approaches such important matters.