BREAKING: Google Forfeits $500 Million in Drug Case—RI Led Investigation

Wednesday, August 24, 2011

 

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Internet giant Google has agreed to forfeit $500 million for improperly assisting online Canadian pharmaceutical companies in illegally selling drugs to U.S. consumers, in what is one of the largest forfeiture cases in U.S. history.

 

The investigation on the landmark case took place in Rhode Island and involved various local and state agencies, including the East Providence and North Providence police departments, who loaned investigators to a task force led by the FDA.

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“This investigation is about the patently unsafe, unlawful importation of prescription drugs by Canadian online pharmacies, with Google’s knowledge and assistance, into the United States, directly to U.S. consumers,” said Peter Neronha, the U.S. Attorney for Rhode Island. “It is about taking a significant step forward in limiting the ability of rogue online pharmacies from reaching U.S. consumers, by compelling Google to change its behavior. It is about holding Google responsible for its conduct by imposing a $500 million forfeiture, the kind of forfeiture that will not only get Google’s attention, but the attention of all those who contribute to America’s pill problem.”

It’s unclear exactly how much of that $500 million will come back to Rhode Island, but the return is expected to run into the millions.

Google reportedly permitted various Canadian drug companies to sell their prescription drug through its AdWords program. Neronha said the company had been aware of this since 2003 yet allowed it to continue until 2009, when it became aware of the U.S. investigation.

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