Seventh Circuit Upholds Ruling Against Pharmaceutical Company for Failed Sexual Dysfunction Drug
You probably won’t be sued for lying about your sexual abilities in a bar or on an internet chat site, but lying about sexual dysfunction to the FDA and potential investors can get you into a lot of trouble.
Last week, the Seventh Circuit upheld a district court’s ruling that Harvard Scientific Corp. and its founder committed fraud and violated securities laws by lying to investors about the potential of a new drug to treat male and female sexual dysfunction —
During the approval process, the Food and Drug Administration learned that Harvard Scientific had falsified the findings of a clinical study. The FDA ordered the company to stop trials until an audit was completed, but Harvard Scientific continued to tout the treatment’s alleged success to potential investors. [source]
A link to the opinion is here.