Extradition to the United States from Everywhere Else—Transnational Antitrust

Something that we pointed out a few months ago was the increasing amount of transnational antitrust prosecutions started in the United States, with an implicit corresponding increase in the number of international extradition requests for those accused of engaging in anti-competitive behavior. Our assumptions continue to be confirmed.

A “surge” in the number of extradition requests for antitrust activity is expected, and “the world is becoming less safe for cartel participants,” according to Thomas Barnett, the head of the DOJ’s Antitrust Division.^[1] He added that “global cartels represent[] the most serious threat to consumers in the world,” and that transnational cooperation in the investigation of cartels means that “guilty individuals and companies [are] facing ‘greater consequences’ than ever.”^[2]

With half of the United States’ antitrust prosecutions involving foreign defendants, and with the extradition of the NatWest Three and the approved extradition of Ian Norris, there is some fear that “the Department of Justice's targeting of foreign nationals allegedly involved in cartel activity could lead to extraditions even of individuals who were cooperating with the British authorities.”^[3]

This news comes as the Antitrust Division has opened an investigation into “allegations of false statements over [Bristol-Myers Squibb and French pharmaceutical giant Sanofi-Aventis’s] deal to end a generic drugmaker’s patent challenge to Plavix, their biggest drug.”^[4] The office of Bristol CEO, Peter Dolan, was raided by the FBI on Wednesday, and the agents “left with documents.”^[5] At issue is an agreement between Britol and its marketing partner, Sanofi, to pay Apotex, Inc., a Canadian generic drug maker, “at least $40 million in a deal under which the generic company ended its Plavix patent challenge.”^[6] The deal has “sparked numerous lawsuits that alleged consumers were being denied access to cheap generic drugs.”^[7] The news of the probe has caused share prices in both companies to tumble.^[8]

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[1] Stephanie Kirchgaessner et al., US to Close in on Cartel Operators Worldwide, Fin. Times (via MSNBC.com), Jul. 27, 2006.
[2] Id.
[3] Id.
[4] Stephanie Kirchgaessner et al., Bristol and Sanofi Face Probe Over Drug Deal, Fin. Times, Jul. 28, 2006 (subscription only).
[5] John Carreyou et al., FBI Raids Offices at Bristol-Myers Over Plavix Deal, Wall St. Journal, Jul. 28, 2006 (subscription only).
[6] Theresa Agovino, Justice Dept. Launches Bristol-Myers Probe, AP (via Yahoo!), Jul. 28, 2006.
[7] Id.
[8] Bristol-Myers, Sanofi Patent Deal is Under US Probe, Bloomberg, Jul. 27, 2006; Le risque de réouverture du procès pour contrefaçon du Plavix fait plonger Sanofi-Aventis, La Tribune, Jul. 27, 2006.