Government Trying To Get Rid Of CEO Called A "Game-Changer" (FRX)

The Obama administration has made no secret that it views company CEO's as a foe, especially with the latest effort to try to get rid of Howard Solomon of Forest Laboratories Inc. FRX. In an article in the Wall Street Journal, The Department of Health and Human Services this month notified Howard Solomon of Forest Laboratories Inc. that it will not do business with him anymore. If this is the case, then Forest could be shut off from its major customers, Medicare, Medicaid and the Veterans Administration. Forest would almost certainly get rid of Solomon, now 83 years old, to protect the company and its shareholders. The company has already agreed to pay a $313 million in fines, as it agreed to a plea with the U.S. government over sales misconduct, but an actual CEO removal is considered massive, according to Richard Westling, a corporate defense attorney. The "action against the CEO of Forest Labs is a game changer," Westling said to the Journal. Westling practices in Nashville, and has represented executives in different industries against the government. Westling went on to say, "It would be a mistake to see this as solely a health-care industry issue. The use of sanctions such as exclusion and debarment to punish individuals where the government is unable to prove a direct legal or regulatory violation could have wide-ranging impact." For now, Forest is siding with Solomon. "No one has ever alleged that Mr. Solomon did anything wrong, and excluding him [from the industry] is unjustified," said general counsel Herschel Weinstein. "It would also set an extremely troubling precedent that would create uncertainty throughout the industry and discourage regulatory settlements." If Solomon is ultimately removed at the board's decision, or mysteriously retires to spend more time with his family, or pursue other interests, you can be sure that the Obama administration had a big hand in this, and it could pave the way for other CEO's to be removed.