Tuesday, April 6, 2010

Toyota, Boston Scientific pay for their greed

You had to know this was coming, the feds handed down a 16 million dollar fine. Transportation Sec Ray LaHood is quoted in the Globe, "We now have proof that Toyota failed to live up to its legal obligations". While the fine seems large, Toyota is a multi hundred billion dollar company. The evidence released to the media was convincing and a no brainier, they covered up what they knew and when, and felt smug about it.

Toyota is considering a challenge to this ruling. If the ruling stands, there are 100 or so class action suites ready to go.

In the largest criminal penalty ever paid by a medical device company, Boston Scientific s Guidant LLC Division, will pay 296 million dollars for violating two federal misdemeanor counts alleging it failed to properly disclose changes made to some implantable heart devices.

A long story short, a judge will either adopt this plea agreement, add to it or change it in some way. The bottom line is, the company will pay for it's greed and has already settled all the civil suits which probably is millions more.

And nothing more highlights that attitude of greed and self intlement, than the newly appointed CEO of Boston Scientific, whos comapasation for 2009 was 33.5 million dollars. The WSJ found that only two large comapny CEOs will make more than Ray Elliot form Boston Scientific.

In comparison, CEO William Swanson from Raytheon was paid 18.6 million, down from 2008 pay of 20.5 million.

All this while 9,200 Mass residents lost their EU pay check this week and if the Senate can't find their way to extend, next week and the week after, 10,000 more may be without a pay check. Our newest member of the Senate and his colleagues are asking where the money will come from. What in the world are they thinking? This fragile state economy will suffer huge looses if they don't fund these extensions. Using left over TARP money is better than doing nothing at all. Funding country rebuilding should start at home first, then the outside world.