It was once a fundamental principle of corporate law that corporate officers were largely shielded from personal exposure to the liabilities of the corporation. It was once a fundamental principle of criminal law that in order to convict a defendant of a crime, a prosecutor had to prove the defendant’s mens rea or criminal intent, and guilt beyond a reasonable doubt. However, in cases such as United States v. Dotterweich1 and United States v. Park,2 the U.S. Supreme Court set forth what is known as the “responsible corporate officer” doctrine. Under this doctrine, in situations where corporations violate certain statutes, particularly those protecting public health or safety, corporate officers and executives can be convicted of a crime even if they had no involvement in the wrongdoing, or even knowledge that the wrongdoing was taking place.
Federal prosecutors, apparently frustrated that unprecedented fines and penalties and burdensome corporate integrity agreements are proving to be insufficient deterrents, now appear determined to bring criminal cases against corporate executives in the health care industry, including in-house lawyers and chief compliance officers, using the responsible corporate officer doctrine. The government’s intent is evident in recent pronouncements, and in the culmination of a case where the general counsel and two senior executives of a pharmaceutical company were not only criminally convicted, but subsequently excluded from all government health benefit programs.
‘Purdue’ Case
