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Forest CEO faces ban by HHS

April 15, 2011 12:17 AM UTC

HHS's Office of the Inspector General (OIG) is considering action that could force Howard Solomon from his post as chairman, president and CEO of Forest Laboratories Inc. (NYSE:FRX) following a settlement last year in which the company pleaded guilty to obstruction of an agency proceeding and violations of the Food, Drug and Cosmetic Act. According to Forest, the OIG said in a letter on Tuesday it is considering excluding Solomon from participation in federal healthcare programs such as Medicare and Medicaid.

According to the company, Solomon has 30 days to say why he should not be excluded. Forest said that if excluded, Solomon would be required to step down from his positions. The company also said Solomon plans to begin litigation to prevent such exclusion from taking effect. ...