Tag Archives: Compliance Program

A Case Study on The Boeing Company Derivative Class Action

In 2006, plaintiffs in a derivative class action against the directors of The Boeing Company (“Boeing”), led by their counsel Labaton Sucharow, achieved a landmark settlement establishing unique and far-reaching corporate governance standards relating to ethics compliance, provisions that will also obligate Boeing to contribute significant funds over and above base compliance spending to implement the various prescribed initiatives.

In particular, Boeing’s Board of Directors will expressly undertake, through amendment of Boeing’s Corporate Governance Principles, reasonable oversight and monitoring responsibility for the implementation of Boeing’s ethics and compliance program and the effectiveness of those processes on an annual basis. The Audit Committee Charter also will be amended, including to provide for the Audit Committee to undertake responsibility for reporting no less than annually to the Board with respect to the implementation and effectiveness of Boeing’s ethics and compliance program. Click here to read more…

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Giant Foods Case Analysis

This case involves convergent technologies, a blending of traditional and cutting-edge business models and an alliance between an established pharmaceutical provider and a fledgling, Information Technology based, Drug marketing firm. Together, these two companies endeavored to create a patient education and prescription drug compliance program by deploying the deep well of customer data acquired by Giant Foods and the proprietary software of Elensys Care services, Inc.

Elensys uses information from Giants pharmacy to send personalized letters, written on pharmacy letterhead but often paid for by pharmaceutical companies, that remind customers to refill prescriptions and pitch new products to customers with particular ailments. Giant first tested the feasibility of running a drug compliance program in-house but quickly determined that its’ Information System requirements were too overwhelming and decided to outsource the program to Elensys. Click here to read more…

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