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	<title>Starkman &#38; Associates &#187; alex berenson</title>
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		<title>A &#8220;Responsible Communication&#8221; About Reckless Canadian Journalism</title>
		<link>http://www.starkmanassociates.com/blogs/eric/a-responsible-communication-about-reckless-canadian-journalism/</link>
		<comments>http://www.starkmanassociates.com/blogs/eric/a-responsible-communication-about-reckless-canadian-journalism/#comments</comments>
		<pubDate>Wed, 06 Jan 2010 21:42:08 +0000</pubDate>
		<dc:creator>Eric Starkman</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[alex berenson]]></category>
		<category><![CDATA[canadian journalism]]></category>
		<category><![CDATA[canadian journalists]]></category>
		<category><![CDATA[libel law]]></category>
		<category><![CDATA[libel suits]]></category>
		<category><![CDATA[responsible journalism]]></category>

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		<description><![CDATA[When I first joined The Detroit News after working for several years as a business reporter at major Canadian newspapers, I was completely taken aback by the comparably low level of editorial concern and legal oversight given to any of my highly critical stories about private individuals.&#160; <a href=http://www.starkmanassociates.com/blogs/eric/a-responsible-communication-about-reckless-canadian-journalism/ rel="bookmark" title="Link to A "Responsible Communication" About Reckless Canadian Journalism">more</a>&#8230;]]></description>
			<content:encoded><![CDATA[<p>When I first joined <em>The Detroit News</em> after working for several years as a business reporter at major Canadian newspapers, I was completely taken aback by the comparably low level of editorial concern and legal oversight given to any of my highly critical stories about private individuals.  As it was considerably easier to sue for libel in Canada, I had grown rather accustomed to my hard-hitting stories about business executives being subjected to Talmudic scrutiny by a bevy of seasoned editors and legal counselors.  At <em>The News</em>, however, my investigative reports pretty much sailed through the copy desk as I had written them.</p>
<p>I suspect the unusually high number of ex-pat Canadians at major U.S. print and broadcast outlets probably has as much to do with the strong caliber of Canadian journalists&#8217; rigorous training as it does with simple geography.  Fear of being sued is a tremendous motivator to practice responsible and diligent journalism, and the extra miles Canadian reporters must often go to get their stories published undoubtedly helps ensure that media debacles such as the reckless maligning of innocent individuals like <a href="http://www.starkmanassociates.com/blogs/eric/passing-of-heroes/" title="Richard Jewell, Responsible Journalism">Richard Jewell</a> and <a href="http://www.starkmanassociates.com/blogs/eric/lucy-dalglish-shield-law/" title="Dr Steven Hatfill, Responsible Journalism">Dr. Steven Hatfill</a> happen with a lot less frequency north of the border.  Indeed, in Canada <a href="http://www.nytimes.com/1997/01/07/world/canada-issues-an-apology-to-mulroney-in-libel-suit.html?pagewanted=1" target="_blank" title="Canadian Libel Law">even former prime ministers can successfully sue for libel</a>.</p>
<p>But that&#8217;s about to change – and not for the better. Sadly, <a href="http://www.cbc.ca/canada/ottawa/story/2009/12/22/supreme-court-libel-responsible-journalism-citizen-star.html" target="_blank" title="Canadian Libel Law">the Supreme Court of Canada recently decided </a> to dismantle some of the safeguards built into libel laws by allowing journalists to cite &#8220;responsible communication&#8221; as a defense in libel suits.  The Court ruled that Canadian journalists can avoid liability if they were &#8220;diligent&#8221; when trying to verify the allegations.  Under that standard, the reporters responsible for destroying the lives of Mr. Jewell and Dr. Hatfill couldn&#8217;t be held liable under Canadian law.</p>
<p>In theory, a vigorous and aggressive independent press is healthy for a functioning free society. I agree &#8211; <em>in theory.  </em>Practice is another matter altogether. Truth be told, the mainstream American media has become a business controlled by profit-driven companies seeking to bolster their bottom lines and staffed by reporters focused more on <a href="http://www.starkmanassociates.com/blogs/eric/new-york-times-journalists-create-brand/" target="_blank" title="Reckless Canadian Journalism">promoting their brands</a> than pursuing justice, revealing truth, and upholding the profession&#8217;s historic role as the Fourth Estate.</p>
<p>Oh, Canada&#8230;.you&#8217;ve truly picked the wrong standard to benchmark.</p>
<p><em>New York Times</em> reporter Alex Berenson is representative of the moral compass of journalists who remain in the profession: Having orchestrated a highly dubious scheme to gain access to court-sealed documents relating to the controversial antipsychotic drug Zyprexa, Mr. Berenson then balked about publishing a story when one of his cohorts insisted on making the documents widely available to serve the public good.  Faced with a choice of serving the public interest or promoting their own, I sadly suspect most U.S. reporters would follow Berenson&#8217;s lead.  (An outline of Berenson&#8217;s largely unknown antics can be found <a href="http://www.starkmanassociates.com/blogs/eric/fear-or-favor/" title="Alex Berenson">here</a> and <a href="http://www.starkmanassociates.com/blogs/eric/alex-berenson-bradford-berenson/" title="Alex Berenson">here</a>.)</p>
<p>The Supreme Court of Canada should have taken a lesson from Parliament about knowing when to rebuff the prevailing wisdom of its neighbor.  Years ago, Canada&#8217;s Parliament blocked four of the country&#8217;s five major Canadian banks from merging, showing remarkable responsibility and prescience by ignoring the dominant view in the U.S. at the time that &#8220;bigger is better&#8221; when it comes to financial institutions.  Had those bank marriages been allowed, the merged institutions would likely have been badly crippled during the global economic collapse by their combined U.S. exposures.  Instead, Canada&#8217;s banks remain among the healthiest and safest in the world.</p>
<p>Canada would be similarly wise to prevent the creation of a U.S. style press where the media can publish irresponsible and false stories with wanton abandon and without retribution. Regardless of your political leanings, it&#8217;s hard to argue that despite having the most liberal press freedoms in the world, the American public is any more enlightened than their brethren elsewhere in the Western world.</p>
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		<title>All the News That&#8217;s Fit to Spin</title>
		<link>http://www.starkmanassociates.com/blogs/eric/the-new-york-times-spin/</link>
		<comments>http://www.starkmanassociates.com/blogs/eric/the-new-york-times-spin/#comments</comments>
		<pubDate>Mon, 11 Feb 2008 21:34:39 +0000</pubDate>
		<dc:creator>Eric Starkman</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[alex berenson]]></category>
		<category><![CDATA[eli lilly]]></category>
		<category><![CDATA[ethics]]></category>
		<category><![CDATA[pepper hamilton]]></category>
		<category><![CDATA[the new york times]]></category>
		<category><![CDATA[zyprexa]]></category>

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		<description><![CDATA[It looks like we got spun again by The New York Times.&#160; <a href=http://www.starkmanassociates.com/blogs/eric/the-new-york-times-spin/ rel="bookmark" title="Link to All the News That's Fit to Spin">more</a>&#8230;]]></description>
			<content:encoded><![CDATA[<p><img class="top" src='http://www.starkmanassociates.com/files/new-york-times-spin.jpg' alt='NYTimes and Alex Berenson Email Spin' />It looks like <a href="http://www.starkmanassociates.com/2007/09/25/fear-or-favor/" title="Link to S&amp;A: Without Fear of Favor, Alex Berenson and Eli Lilly">we got spun again by <em>The New York Times</em></a>.</p>
<p>In our zeal to safeguard the integrity of our firm and its blog, we rushed an apology last week to <em>The New York Times</em> and reporter Alex Berenson that now appears to have been premature. The <a href="http://www.starkmanassociates.com/2008/02/07/pepper-hamilton-email-error/" title="Link to S&amp;: Pepper Hamilton Email Error, New York Times Statement" target="_blank">S<span class="amp">&amp;</span>A post in question</a> was based on <a href="http://www.portfolio.com/news-markets/top-5/2008/02/05/Eli-Lilly-E-Mail-to-New-York-Times" title="Link to Portfolio: Lilly's $1 Billion E-Mailstrom, Pepper Hamilton Error" target="_blank">a story that appeared on Portfolio.com</a> earlier in the week. When the <em>Times</em> sent us a statement saying that the original story was &#8220;incorrect&#8221;, we took the newspaper at its word and felt compelled to retract some of our comments.</p>
<p>Well, it turns out the story wasn&#8217;t incorrect. In fact, one could argue that, for the most part, it scored a bulls-eye. The <em>Times</em> insisted that a misdirected email from one of Eli Lilly&#8217;s outside attorneys wasn&#8217;t responsible for Mr. Berenson&#8217;s page-one scoop that the pharmaceutical giant was close to reaching a settlement with federal prosecutors for $1 billion. But <a href="http://www.onthemedia.org/episodes/2008/02/08/segments/93350" title="Link to On the Media: Oops! I E-mailed a Reporter, Alex Berenson Pepper Hamilton Email" target="_blank">Mr. Berenson subsequently admitted</a> on NPR radio, and to the editor of the <a href="http://pharmalot.com/" title="Link to Pharmalot, pharmaceutical industry news" target="_blank">Pharmalot</a> blog, Ed Silverman, (see <a href="http://www.starkmanassociates.com/2008/02/07/pepper-hamilton-email-error/#comment-842" title="Link to Ed Silverman Comment on Alex Berenson Email">his comment</a> on my apology post) that, well, it kinda was.</p>
<p>We could have a field day with the disclosures that have surfaced since our last blog on this topic, but we will stick to the high road and to these two thoughts:</p>
<ol>
<li>We owe an apology to Portfolio.com for unjustifiably discrediting its story. While some might argue that the misdirected email Mr. Berenson received didn&#8217;t have the depth of detailed information about the proposed settlement as the website hinted, by Mr. Berenson&#8217;s own admission the details it did offer provided the confirmation he needed to run with the story;</li>
<li>This ongoing email saga illustrates clearly that there is truly no such thing as off-the-record. Once a reporter has their hands on a piece of sensitive information, they will finagle ways to use it, despite any handshake agreements not to. As we are forever telling clients, if you don&#8217;t want to see something attributed to you on page one of your local newspaper, it&#8217;s best you keep it to yourself.</li>
</ol>
<p>One final thought: For all the blather about the capriciousness of bloggers and so-called citizen journalists, it is interesting to note how quickly those commenting online about this topic last week were quick to issue corrections and clarifications when it seemed their information was wrong. If nothing else, it&#8217;s encouraging to see the old-school principles of fairness and accuracy given the primacy they deserve. </p>
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		<title>&#8216;Fessing Up to Our Pepper Hamilton Error</title>
		<link>http://www.starkmanassociates.com/blogs/eric/pepper-hamilton-email-error/</link>
		<comments>http://www.starkmanassociates.com/blogs/eric/pepper-hamilton-email-error/#comments</comments>
		<pubDate>Thu, 07 Feb 2008 20:57:27 +0000</pubDate>
		<dc:creator>Eric Starkman</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[alex berenson]]></category>
		<category><![CDATA[eli lilly]]></category>
		<category><![CDATA[ethics]]></category>
		<category><![CDATA[pepper hamilton]]></category>
		<category><![CDATA[the new york times]]></category>
		<category><![CDATA[zyprexa]]></category>

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		<description><![CDATA[Update: Alex Berenson admits some truth on NPR and The New York Times&#8216; comments had an element of spin.&#160; <a href=http://www.starkmanassociates.com/blogs/eric/pepper-hamilton-email-error/ rel="bookmark" title="Link to 'Fessing Up to Our Pepper Hamilton Error">more</a>&#8230;]]></description>
			<content:encoded><![CDATA[<p><b>Update</b>: <a href="http://www.starkmanassociates.com/blogs/eric/the-new-york-times-spin/" title="NYTimes claims Portfolio Inaccurate">Alex Berenson admits some truth on NPR and <cite>The New York Times</cite>&#8216; comments had an element of spin</a>.</p>
<p>When we launched this blog, there was unanimous internal agreement that we would adhere to the highest standards of fairness and accuracy. We demand nothing less from ourselves, clients, and the media with regard to the work we do every day, and the content of this blog is no exception. </p>
<p>With that in mind, we naturally became concerned yesterday to read a post on the <a href="http://druganddevicelaw.blogspot.com/2008/02/it-wasnt-peppers-fault-berenson.html" title="Link to Drug and Device Law:  It Wasn't Pepper's Fault! Berenson Confirms." target="_blank">Drug and Device Law blog</a> that the <a href="http://www.portfolio.com/news-markets/top-5/2008/02/05/Eli-Lilly-E-Mail-to-New-York-Times" title="Link to Portfolio: Lilly's $1 Billion E-Mailstrom" target="_blank">Portfolio.com story</a> upon which we based <a href="http://www.starkmanassociates.com/2008/02/05/alex-berenson-bradford-berenson/" title="Link to S&amp;A: Alex Berenson (reporter) vs. Bradford Berenson (attorney)" target="_blank">our own post</a> Tuesday may have been inaccurate. The item in question reported that <em>The New York Times</em> reporter Alex Berenson was able to break the recent page-one story about a possible $1 billion Eli Lilly Zyprexa settlement because he had mistakenly received a confidential email about the talks from an attorney at Eli Lilly’s outside law firm Pepper Hamilton that was intended for a co-counsel colleague at Sidley Austin also named Berenson. </p>
<p>The D&amp;DL post said that Mr. Berenson had denied that the errant email was the initial source of his scoop (Portfolio.com said he had declined to comment). Above the Law, a well-regarded and extremely popular website, also wrote about the wrong-Berenson email mistake, linking to our post and to the original piece on Portfolio.com. They, too, issued a subsequent clarification once Mr. Berenson&#8217;s denial was on the record. </p>
<p>And now it is our turn.</p>
<p>We contacted <em>The New York Times</em> spokespeople directly yesterday to determine if a correction or clarification was indeed warranted. We received the following statement from Catherine J. Mathis, a spokeswoman for the newspaper:</p>
<blockquote><p>Mr. Berenson did receive a misdirected e-mail from Pepper, but that e-mail did not contain a detailed description of the status of the settlement talks. Mr. Berenson had known independently about the settlement talks for some time, and he obtained the details he published in the <em>Times</em> from sources other than Pepper.</p>
<p>The Portfolio version was incorrect.</p></blockquote>
<p>When a newspaper the stature of <em>The New York Times</em> publicly discredits the reporting of another publication, we clearly take it seriously. It now appears that we inadvertently republished erroneous reporting in our blog yesterday, and for that we apologize to both the <em>Times</em> and Mr. Berenson. </p>
<p>Yet&hellip;</p>
<p>If Mr. Berenson knew about the settlement talks for &#8220;some time&#8221; and had received details of the settlement talks from &#8220;sources&#8221; (plural) other than Pepper, we can&#8217;t help but wonder why he then sat on the story. Doing so meant taking a huge risk of getting scooped by a rival on a story that he has pretty much owned. After all, as the <em>Times</em> itself reported, if the $1 billion figure was right, it would be the biggest penalty ever paid by a drugmaker for inappropriate drug marketing activities. Major newspapers typically require only two independent sources to confirm an unattributed story, which Ms. Mathis suggests he had in hand. </p>
<p>And therein lays a very big question. So who were these non-Pepper sources? </p>
<p>We can appreciate why someone on the government side might leak that settlement negotiations were underway. But we would expect that Mr. Berenson&#8217;s editors would insist that he get confirmation from someone at, or very close to, Lilly with first-hand knowledge of the talks. It&#8217;s fairly safe to assume that Lilly didn&#8217;t offer any confirmation, officially or on background, given their reported statement to the <em>Times</em> saying in part, &#8220;&hellip;we regularly have discussions with the government. However, we have no intention of sharing those discussions with the news media and it would be speculative and irresponsible for anyone to do so.&#8221; </p>
<p>Mr. Berenson&#8217;s scoop is extremely damaging to Eli Lilly. If the company does indeed settle for $1 billion, the <em>Times</em> will again undoubtedly give the story some pretty prime real estate and repeat all the damaging allegations regarding Zyprexa. And with the figure now public knowledge, it would seem difficult for prosecutors to accept a settlement for less than $1 billion without it appearing that they had blinked. </p>
<p>It will certainly be interesting to see how this fascinating story plays out.</p>
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		<title>What&#8217;s in a Name? Alex Berenson (the crusading reporter) vs. Bradford Berenson (the high-powered attorney)</title>
		<link>http://www.starkmanassociates.com/blogs/eric/alex-berenson-bradford-berenson/</link>
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		<pubDate>Tue, 05 Feb 2008 20:05:39 +0000</pubDate>
		<dc:creator>Eric Starkman</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[Public Relations]]></category>
		<category><![CDATA[alex berenson]]></category>
		<category><![CDATA[eli lilly]]></category>
		<category><![CDATA[ethics]]></category>
		<category><![CDATA[pepper hamilton]]></category>
		<category><![CDATA[the new york times]]></category>
		<category><![CDATA[zyprexa]]></category>

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		<description><![CDATA[Update: The New York Times claims that the Portfolio piece was &#8220;inaccurate&#8221;.
Update 2: Alex Berenson admits some truth on NPR and The New York Times&#8216; comments had an element of spin.&#160; <a href=http://www.starkmanassociates.com/blogs/eric/alex-berenson-bradford-berenson/ rel="bookmark" title="Link to What's in a Name? Alex Berenson (the crusading reporter) vs. Bradford Berenson (the high-powered attorney) ">more</a>&#8230;]]></description>
			<content:encoded><![CDATA[<p><b>Update</b>: <a href="http://www.starkmanassociates.com/2008/02/07/pepper-hamilton-email-error/" title="NYTimes claims Portfolio Inaccurate"><cite>The New York Times</cite> claims that the <cite>Portfolio</cite> piece was &#8220;inaccurate&#8221;</a>.</p>
<p><b>Update 2</b>: <a href="http://www.starkmanassociates.com/2008/02/07/pepper-hamilton-email-error/" title="NYTimes claims Portfolio Inaccurate">Alex Berenson admits some truth on NPR and <cite>The New York Times</cite>&#8216; comments had an element of spin</a>.</p>
<p><a href="http://www.starkmanassociates.com/blogs/eric/fear-or-favor/" title="Link to S&#038;A: Alex Berenson">More about Alex Berenson</a>.</p>
<p><cite>The New York Times</cite>&#8216; pharmaceutical industry reporter <strong>Alex Berenson</strong> scored a heck of a Page One scoop last week when he revealed that <a href="http://www.nytimes.com/2008/01/30/business/30cnd-drug.html" title="Link to NYTimes: Lilly in Settlement Talks With U.S." target="_blank">Eli Lilly was looking to reach a settlement</a> with federal prosecutors over the company&#8217;s alleged inappropriate marketing of antipsychotic drug Zyprexa. A staggering &#8220;mea culpa&#8221; settlement figure of $1 billion or more was mentioned. </p>
<p>This was a big story, no question about it. Eli Lilly is a publicly traded company and the $1 billion settlement would be the largest ever paid by a drug company for improper drug marketing (so said the <cite>Times</cite>). </p>
<p>In the piece, reporter Alex Berenson cited sources who requested anonymity &#8220;because they have not been authorized to talk about the negotiations.&#8221; He also included a statement from an Eli Lilly representative saying, in part, &#8220;&hellip;we regularly have discussions with the government. However, we have no intention of sharing those discussions with the news media and it would be speculative and irresponsible for anyone to do so.&#8221;</p>
<p>So how did Mr. Berenson get the scoop? It turns out that it wasn&#8217;t through any tried-and-true gumshoe reporting techniques taught at j-school. He simply had the fortune of having the same last name as one of Eli Lilly’s attorneys. </p>
<p>According to a <a href="http://www.portfolio.com/news-markets/top-5/2008/02/05/Eli-Lilly-E-Mail-to-New-York-Times" title="Link to Portfolio: Lilly's $1 Billion E-Mailstrom" target="_blank">story posted today on Portfolio.com</a>, one of the drugmaker&#8217;s outside attorneys at Philadelphia-based <a href="http://www.pepperlaw.com/" title="Link to Pepper Hamilton, Eli Lilly attorney" target="_blank">Pepper Hamilton</a> had mistakenly emailed detailed, highly confidential information on the settlement talks to the reporter instead of <strong>Bradford Berenson</strong>, the intended recipient (<a href="http://www.sidley.com/" title="Link to Sidley Ausin, co-counsel to Eli Lilly" target="_blank">co-counsel at another law firm</a>).</p>
<p>The email gaffe, unquestionably one of the greatest fears of everyone handling sensitive information, is apparently the result of very similar email addresses: Mr. Berenson, the reporter, simply goes by <em>berenson</em> in his email address while Mr. Berenson, the attorney, goes by <em>bberenson</em>. </p>
<p>We can&#8217;t honestly fault the <cite>Times</cite> or its reporter for breaking this story. I would have done the same thing back in the day. But Mr. Berenson mislead by omission. He should have been upfront with readers about how he learned of the settlement talks. Since there was no official confirmation from either side, doing so would have gone a long way toward letting readers judge the credibility of the story for themselves. Mr. Berenson quotes Nina Gussack, a Pepper Hamilton lawyer representing Eli Lilly, as saying she couldn’t comment on the case. Judging from Eli Lilly&#8217;s own statement, it doesn&#8217;t appear that anyone alerted the company’s spokesperson as to how Mr. Berenson got the story. </p>
<p>Mr. Berenson&#8217;s earlier reporting on this topic <a href="http://www.starkmanassociates.com/2007/09/25/fear-or-favor/" title="Link to S&#038;A: Without Fear of Favor, Alex Berenson" target="_blank">has been called into question</a> before. According to a respected federal judge, Mr. Berenson was &#8220;deeply involved&#8221; in an &#8220;illegal&#8221; scheme that effectively amounted to &#8220;stealing&#8221; documents. (Neither the <cite>Times</cite> nor Mr. Berenson have ever publicly explained the extent of his involvement.)</p>
<p>Eli Lilly is reportedly sticking by Pepper Hamilton, and I applaud the company for its loyalty. That said, I can&#8217;t help but wonder why an attorney at Pepper Hamilton had Alex Berenson&#8217;s email address in her email database in the first place. As I&#8217;ve argued before, <a href="http://www.starkmanassociates.com/2008/01/29/mary-kategate/" title="Link to S&#038;A: Why Lawyers Should Not Engage in Media Relations" target="_blank">reporters and attorneys are best left in separate corners</a>. Especially when the latter specializes in high-profile, high-stakes crisis work. By any measure, Eli Lilly&#8217;s PR handling of allegations of wrongdoing regarding its Zyprexa marketing has been a debacle. If its attorneys are driving the media relations strategy, it&#8217;s easy to understand why.</p>
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		<title>Without Fear or Favor?</title>
		<link>http://www.starkmanassociates.com/blogs/eric/fear-or-favor/</link>
		<comments>http://www.starkmanassociates.com/blogs/eric/fear-or-favor/#comments</comments>
		<pubDate>Tue, 25 Sep 2007 21:54:06 +0000</pubDate>
		<dc:creator>Eric Starkman</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[Public Relations]]></category>
		<category><![CDATA[Reputation Management]]></category>
		<category><![CDATA[alex berenson]]></category>
		<category><![CDATA[eli lilly]]></category>
		<category><![CDATA[ethics]]></category>
		<category><![CDATA[the new york times]]></category>
		<category><![CDATA[zyprexa]]></category>

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		<description><![CDATA[Other media-related posts in this series:

What’s in a Name? Alex Berenson vs. Bradford Berenson
All the News That’s Fit to Spin
Journalism’s Shameful Little Secret

The New York Times vs.&#160; <a href=http://www.starkmanassociates.com/blogs/eric/fear-or-favor/ rel="bookmark" title="Link to Without Fear or Favor?">more</a>&#8230;]]></description>
			<content:encoded><![CDATA[<p class="alignright post-links-title">Other media-related posts in this series:</p>
<ul class="alignright post-links-list">
<li><a href="http://www.starkmanassociates.com/blogs/eric/alex-berenson-bradford-berenson/" title="Alex Berenson">What’s in a Name? Alex Berenson vs. Bradford Berenson</a></li>
<li><a href="http://www.starkmanassociates.com/blogs/eric/the-new-york-times-spin/" title="New York Times, Alex Berenson">All the News That’s Fit to Spin</a></li>
<li><a href="http://www.starkmanassociates.com/blogs/eric/media-plagiarism-maureen-dowd-barney-gimbel/" title="Media plagiarism, maureen dowd">Journalism’s Shameful Little Secret</a></li>
</ul>
<h2><em>The New York Times</em> vs. Eli Lilly</h2>
<p><img src="http://www.starkmanassociates.com/files/new-york-times-vs-eli-lilly.gif" class="top" alt="New York Times vs Eli Lilly" />One of my favorite Saturday morning rituals is to pass the early hours with a steaming cup of overpriced coffee and an ambitious pile of newspapers.  Call me old school, but I prefer paper to pixels, relying on printed news sources over the online variety to keep me informed of the Big Picture stuff.  As a former journalist, newspaper ink still runs through my veins.</p>
<p>The never-quite-dormant reporter in me was jarred awake two weekends ago as I sat in my local java joint, reading <em>The New York Times</em>&#8216; business section.  Buried on page two was a <a href="http://www.nytimes.com/2007/09/08/business/08lilly.html" title="Link to New York Times: Doctor Who Leaked Documents Will Pay $100,000 to Lilly" target="_blank">brief item about <strong>Dr. David Egilman</strong></a>, an &#8220;expert witness&#8221; hired by the plaintiffs in a legal dispute with <a href="http://www.lilly.com/" title="Link to Eli Lilly homepage" target="_blank"><strong>Eli Lilly</strong></a> regarding its antipsychotic drug <a href="http://en.wikipedia.org/wiki/Olanzapine" title="Link to Wikipedia: Olanzapine" target="_blank"><strong>Zyprexa</strong></a>, who was now &#8216;fessing up that he had indeed given selected confidential documents, as alleged, to an Alaska attorney, who in turn gave the documents to <em>Times</em> reporter <a href="http://www.bookreporter.com/authors/au-berenson-alex.asp" title="Link to Bookreporter.com: Author Profile: Alex Berenson" target="_blank"><strong>Alex Berenson</strong></a>.  The story reported that <a href="http://research.brown.edu/research/profile.php?id=1100924049" title="Link to Brown University: David Egilman" target="_blank">Dr. Egilman</a> had agreed to pay $100,000 to Eli Lilly to settle the case, and that he had acknowledged in a court filing that &#8220;there was another side to the Zyprexa story&#8221; that wasn&#8217;t represented in the documents that had been given to the <em>Times</em>.</p>
<p>The story piqued my curiosity.  I recalled the <em>Times</em> had previously run a series of <a href="http://www.nytimes.com/2006/12/17/business/17drug.html" title="Link to New York Times: Eli Lilly Said to Play Down Risk of Top Pill" target="_blank">damning page-one articles by Mr. Berenson</a> reporting that Eli Lilly had failed to inform doctors that <a href="http://www.nytimes.com/2006/12/18/business/18drug.html" title="Link to New York Times: Drug Files Show Maker Promoted Unapproved Use" target="_blank">Zyprexa could cause excessive weight gain and diabetes</a>, a not-so-insignificant unwanted side effect that sparked thousands of class action lawsuits.  If an expert witness involved in those cases was now publicly admitting that &#8220;there was another side of the story,&#8221; the disclosure certainly deserved considerably more prominence than a brief mention, particularly as Zyprexa accounts for nearly one-third of Eli Lilly&#8217;s profits.</p>
<p>There were other signs that something was radically amiss.  There was neither byline nor attribution to a wire service, and the article made no mention of any attempts to contact Dr. Egilman or Eli Lilly for comment, all of which are otherwise standard for the <em>Times</em>.  And most curious of all, the story quoted <em>Times</em> attorney George Freeman defending Mr. Berenson&#8217;s articles as being &#8220;newsworthy and accurate.&#8221;  Hmmm… like most top-tier publications, the <em>Times</em> would typically offer up its editors to defend the newspaper&#8217;s editorial judgments when questioned.  Was there some behind-the-curtain legal impetus driving Mr. Freeman&#8217;s involvement in this piece?  I grew increasingly intrigued and started digging into the story myself.</p>
<p>Turns out my hunch proved correct.  A respected federal judge in February accused Mr. Berenson of being &#8220;deeply involved&#8221; with Dr. Egilman (and the attorney to whom the latter had turned over the confidential documents) in an &#8220;illegal&#8221; scheme that effectively amounted to &#8220;stealing&#8221; the documents.  In an <a href="http://www.eff.org/legal/cases/zyprexa/zyprexa_judgement.pdf" title="Link to Electronic Frontier Foundation: District Court Final Judgment Order and Injunction [PDF]" target="_blank">impassioned decision [PDF]</a> simmering with outrage, senior federal district Judge Jack B. Weinstein also warned that the documents obtained by Mr. Berenson &#8220;are segments of a large body of information, whose selective and out-of-context disclosure may lead to confusion in the patient community and undeserved reputational harm&#8221; to the drugmaker.  Judge Weinstein went so far as to declare Mr. Berenson&#8217;s conduct &#8220;reprehensible.&#8221;</p>
<p>While the <em>Times</em> did carry a <a href="http://www.nytimes.com/2007/02/14/business/14lilly.html" title="Link to New York Times: Judge Rules Drug Documents Must Be Returned to Eli Lilly" target="_blank">concise report on Judge Weinstein&#8217;s decision</a> (albeit on page C7 unlike Mr. Berenson&#8217;s extensive page-one pieces), it was Mr. Freeman who officially commented, stating that the decision &#8220;vastly overstates Alex&#8217;s role in the release of the documents&#8221; (thereby suggesting that he did indeed participate in some capacity).  Company spokeswoman Diane McNulty <a href="http://www.washingtonpost.com/wp-dyn/content/article/2007/02/13/AR2007021301263.html" title="Link to Washington Post: Eli Lilly Regains Leaked Papers" target="_blank">echoed the statement</a> almost verbatim to other news outlets.  The <em>Times</em> has yet to offer its version of the actual extent of Mr. Berenson&#8217;s involvement.</p>
<p>Exactly how Alex Berenson obtained and reported on the Zyprexa documents should be of critical concern to all corporations and anyone concerned with privacy rights and the integrity of the judicial system.  The documents in question were among reams-worth of evidence furnished by the pharmaceutical company to expedite the settlement of some 30,000 personal injury suits relating to its drug.  <a href="http://www.eff.org/legal/cases/zyprexa/zyprexa_judgement.pdf" title="Link to Electronic Frontier Foundation: District Court Final Judgment Order and Injunction [PDF]" target="_blank">According to Judge Weinstein [PDF]</a>, they included &#8220;a substantial amount&#8221; of sensitive information, including individual patient medical records and proprietary trade secrets.  Among other reasons, they were sealed by the court to protect litigants &#8220;from the embarrassment and oppression that would result from the unnecessary pretrial disclosure of their private information.&#8221;</p>
<p>First Amendment champions will no doubt continue to defend Mr. Berenson&#8217;s alleged zealousness and say the public&#8217;s right to know was well served by his reporting, even if it was based on an incomplete set of documents.  Predictably, even the <em>Times</em> itself <a href="http://www.nytimes.com/2007/01/15/technology/15link.html" title="Link to New York Times: Documents Borne by Winds of Free Speech" target="_blank">went down that road</a>, albeit in a roundabout fashion.  Others will speculate that the information disclosed by Mr. Berenson likely was responsible for Eli Lilly agreeing to settle the scores of Zyprexa lawsuits for more than $1 billion and that his means were justified by the end.</p>
<p>But it&#8217;s difficult to argue that Mr. Berenson was solely driven by the pursuit of a noble cause.  After all, according to testimony by <a href="http://en.wikipedia.org/wiki/James_Gottstein" title="Link to Wikipedia: James Gottstein" target="_blank"><strong>James Gottstein</strong></a>, the Alaska attorney who gave the <em>Times</em> the documents, <a href="http://www.eff.org/legal/cases/zyprexa/zyprexa_judgement.pdf" title="Link to Electronic Frontier Foundation: District Court Final Judgment Order and Injunction [PDF]" target="_blank">Mr. Berenson insisted he wouldn&#8217;t publish the story [PDF]</a> if Mr. Gottstein followed through with his original plan to disseminate them widely to other news organizations.  Apparently what&#8217;s good for the <em>Times</em> carries a teensy more weight than what&#8217;s good for the public.</p>
<h3>So Who is This Dr. David Egilman?</h3>
<p>Dr. David Egilman, a Massachusetts doctor and a clinical associate professor of community health at Brown University, is a physician on a mission.  Citing the influence of his father, who was interred in a German concentration camp, and the 18th century philosopher <a href="http://en.wikipedia.org/wiki/Edmund_Burke" title="Link to Wikipedia: Edmund Burke" target="_blank">Edmund Burke</a>, Dr. Egilman says he has &#8220;devoted&#8221; considerable time and resources studying and reporting on the effects of silence on public health.  &#8220;Silence can injure and kill,&#8221; he <a href="http://thepumphandle.wordpress.com/2007/09/11/the-truth-is-not-free/" title="Link to The Pump Handle: The Truth Is Not Free" target="_blank">recently posted on a website</a>. &#8220;For public health, the sound of silence is the funeral dirge.  I have not and will never play that tune.&#8221;</p>
<p>Dr. Egilman&#8217;s vocal orchestrations have afforded him a lucrative sideline.  <a href="http://thefacts.com/story.lasso?ewcd=c2feba40a6deb92e" title="Link to The Facts: Controversy surrounds witness in Vioxx trial" target="_blank">According to one report</a>, he has earned millions – as much as $25 million – testifying as an expert witness at about 100 personal injury trials; <a href="http://firstvioxxtrial.blogspot.com/2005/07/merck-appeals-ruling-to-texas-supreme.html" title="Link to  First Vioxx Trial: Merck Appeals Ruling to Texas Supreme Court" target="_blank">another report</a> pegs the number at about $2.5 million.  His exact expertise is difficult to discern: he has been identified in one news account as &#8220;an expert on occupational lung disease,&#8221; but he has testified on subjects requiring a much wider range of medical knowledge including cardiology, obesity, and diabetes. Indeed, just a few years ago, he was involved as an expert witness in a case filed against Merck by a widow claiming her husband died of a Vioxx-related heart attack.  A Merck attorney <a href="http://thefacts.com/story.lasso?ewcd=c2feba40a6deb92e" title="Link to The Facts: Controversy surrounds witness in Vioxx trial" target="_blank">characterized Dr. Egilman as someone who &#8220;is prepared to testify to just about anything,&#8221;</a> noting that his expert designation had been filed with the court prior to him reviewing any documents relating to the case.</p>
<p>Dr. Egilman is no stranger to controversy.  In February 2005, he <a href="http://quackfiles.blogspot.com/2005/04/journal-prints-rejected-paper-as-ad.html" title="Link to Confessions of a Quackbuster: Journal prints rejected paper - as ad" target="_blank">repackaged a proposed bylined article</a> for the <em>Journal of Occupational and Environmental Medicine</em> as a paid advertisement after it was rejected by the editorial board, thereby bypassing the peer review process.  Later that year, jurors in a landmark Colorado toxics trial were instructed to ignore Dr. Egilman&#8217;s testimony after the judge learned that he had violated a gag order and posted &#8220;scurrilous and inflammatory&#8221; information about the trial on <a href="http://egilman.com/" title="Link to Egilman.com homepage" target="_blank">his website</a>.  The judge <a href="http://www.pointoflaw.com/archives/001392.php" title="Link to Pointoflaw.com: Lying with Statistics - Ernst v. Merck edition" target="_blank">ruled that Dr. Egilman was &#8220;not objective, reliable, or credible.&#8221;</a>  The doctor subsequently sued two prominent law firms for allegedly gaining improper access to his password-protected website, which was how the court had learned of his postings.  After a judge ruled against him, <a href="http://www.law.com/jsp/article.jsp?id=1134036310706" title="Link to ALM's Law.com: Law Firms Not Liable in Alleged Web Hacking Case" target="_blank">Dr. Egilman declared</a>: &#8220;The legal system is designed to benefit people in power.  That is why courts said it was legal for blacks to be slaves or ruled it legal to deny women the vote.&#8221;</p>
<p>Dr. Egilman&#8217;s relationship with <em>The New York Times</em> dates back to at least the early nineties.   After being rebuffed by <em>60 Minutes</em> and other news organizations, he claims to have been responsible for a page-one story the <em>Times</em> ran that year <a href="http://query.nytimes.com/gst/fullpage.html?res=9F0CE5DB143FF93BA15751C1A965958260" title="Link to New York Times: 1950 Note Warns About Radiation Test" target="_blank">about the Atomic Energy Commission being warned</a> that it could ultimately face criticism for using human subjects to conduct radiation experiments.  Dr. Egilman&#8217;s hometown newspaper wrote a story about his advocacy work, noting his media placement efforts among others (the feature presumably placed with the continued help of his publicist).</p>
<p>Mr. Berenson has quoted Dr. Egilman multiple times, including a 2003 story about <a href="http://query.nytimes.com/gst/fullpage.html?res=9406E2DD123EF93BA25756C0A9659C8B63" title="Link to New York Times:  Trial Lawyers Are Now Focusing On Lawsuits Against Drug Makers" target="_blank">how trial lawyers planned an onslaught of lawsuits against drug manufacturers</a> for failing to disclose the &#8220;hidden&#8221; dangers of their medicines.</p>
<h3>Judge Weinstein&#8217;s Perspective</h3>
<p>Based on various testimonies, Judge Weinstein concluded that Dr. Egilman tipped off Mr. Berenson that there were some damaging documents about Zyprexa under court-ordered seal, and that the latter inappropriately acted to obtain those documents.  These excerpts from his <a href="http://www.eff.org/legal/cases/zyprexa/zyprexa_judgement.pdf" title="Link to Electronic Frontier Foundation: District Court Final Judgment Order and Injunction [PDF]" target="_blank">78-page opinion [PDF]</a> speak for themselves:</p>
<blockquote><p>&#8220;…Alex Berenson was aware of the protective order.  He discussed with plaintiff&#8217;s expert, Dr. David Egilman, means of escaping the order&#8217;s restrictions and obtaining protected documents in the expert&#8217;s possession…even though Egilman had agreed in writing to be bound by the order…&#8221;</p></blockquote>
<blockquote><p>&#8220;…Both Berenson and Egilman were cognizant of the fact that the (protective order) took account of the possibility that the protected documents could be subpoenaed by courts or executive agencies. So Berenson provided Egilman with the name of an Alaska attorney, James Gottstein, unconnected to the instant litigation, who might be willing to employ a pretense to subpoena the documents and help disseminate them in violation of the protective order…&#8221;</p></blockquote>
<blockquote><p>&#8220;…To carry out the scheme for obtaining and disseminating the protected documents, Gottstein intervened in a state case in Alaska wholly unrelated to Zyprexa.  In that case, he then subpoenaed from Egilman confidential documents he knew to be under the protective order which bore no relevance to the Alaska litigation. The subpoenaed documents were sent by Egilman to Gottstein pursuant to an expedited amended subpoena about which Lilly was deliberately kept in the dark so that it would be unable to make a timely objection…Gottstein immediately sent the confidential documents on to Berenson and others…&#8221;</p></blockquote>
<blockquote><p>&#8220;…Intending that they be published extensively, Gottstein distributed the sealed documents to various organizations and individuals. No distribution to newspapers other than <em>The New York Times</em> was made because of Berenson&#8217;s explicit warning to his co-conspirators that if the <em>Times</em> was not given &#8220;an exclusive&#8221; on the story, it would not publish anything at all about the documents…&#8221;</p></blockquote>
<p>Judge Weinstein emphasized that &#8220;this is not a case of a newspaper obtaining, with clean hands, documents provided to it by government employees, whistleblowers, or protesters.  Acknowledging the <em>Times</em>&#8216; and <em>Washington Post</em>&#8217;s famed publication of <a href="http://en.wikipedia.org/wiki/Pentagon_Papers" title="Link to Wikipedia: Pentagon Papers" target="_blank">the &#8220;Pentagon Papers&#8221;</a>, he noted there were no allegations that those documents &#8220;were purloined&#8221; by either newspaper.  &#8220;Affirmatively inducing the stealing of documents is treated differently from passively accepting stolen documents of public importance for dissemination.&#8221;</p>
<p>Much of Judge Weinstein&#8217;s opinion is substantiated by testimony given by Mr. Gottstein.  Dr. Egilman declined to testify about his role in the &#8220;conspiracy,&#8221; invoking a Fifth Amendment privilege against self-incrimination (so much for the sound of silence being a funeral dirge!)  The <em>Times</em> declined to allow Mr. Berenson to testify about his role citing a &#8220;long-held principle&#8221; that &#8220;it would be inappropriate for any of our journalists voluntarily to testify about news gathering at the <em>Times</em>.&#8221;</p>
<h3><em>The New York Times</em> Responds</h3>
<p>When I inquired why the story was published without a byline and why it quoted the newspaper&#8217;s attorney, aforementioned <em>Times</em> spokeswoman Diane McNulty explained in an email that the article was &#8220;<em>assembled by editors</em>&#8221; (emphasis mine) because &#8220;wire services on the subject did not include a comment from the <em>Times</em>.&#8221;  As for the decision to insert a quote from Mr. Freeman, Ms. McNulty said: &#8220;The settlement did not throw into question any editorial judgment of the <em>Times</em>, which is why the article quoted a lawyer for the <em>Times</em> rather than an editor.&#8221;</p>
<p>I cannot help but note the irony of the newspaper of record trying to spin a public relations executive.  No byline because the paper relied on wire services?  Ok, then why weren&#8217;t the wire services credited?  At the risk of sounding combative, I thought &#8220;attribution&#8221; and &#8220;fully sourced&#8221; were the buzzwords in the <em>Times</em>&#8216; post-Jayson Blair newsroom.  And as for the latter comment, how can the <em>Times</em>&#8216; editorial judgment not be called into question when it fails to fully cover the fallout from a series of page-one articles it published earlier based on court-sealed, ill-gotten documents leaked with the assistance of a controversial source who now admits they did not &#8220;represent the entire set of information?&#8221;</p>
<p>In any case, given the significance of Dr. Egilman&#8217;s declaration and the prominence given to Mr. Berenson&#8217;s damning stories, it&#8217;s noteworthy that the <em>Times</em> chose to rely on wire services to cover the settlement story and seemingly made no attempt to contact him or Eli Lilly for comment.  The pharmaceutical company had <a href="http://newsroom.lilly.com/ReleaseDetail.cfm?ReleaseID=263204" title="Link to Eli Lilly news: Statement of Eli Lilly and Company on Dr. David Egilman Settlement" target="_blank">issued a statement on the settlement</a>, but it was not cited in the coverage.  Eli Lilly&#8217;s news release references Judge Weinstein&#8217;s decision and specifically claims the Zyprexa documents were obtained &#8220;illegally.&#8221;  It seems to me that a Fortune 500 company claiming to be a victim of illegal activity is deserving of mention.</p>
<p>Clearly, I was not the only one who had issues with the <em>Times</em> story.  A few days after the blurb ran, <a href="http://www.nytimes.com/2007/09/08/business/08lilly.html" title="Link to New York Times: Doctor Who Leaked Documents Will Pay $100,000 to Lilly" target="_blank">a correction was issued</a>.  I leave it to you to read between the lines:</p>
<p>&#8220;An article in Business Day on Saturday about the settlement of a legal dispute in which a doctor was accused of leaking confidential documents to The <em>Times</em> from the drug maker Eli Lilly, left an incorrect impression about the admissions that the doctor, David S. Egilman, made in the settlement. Dr. Egilman acknowledged that Lilly had a different view of the safety of its schizophrenia drug Zyprexa than was portrayed in the documents. He did not admit that he accepted Lilly&#8217;s view that Zyprexa was safe.&#8221;</p>
<p>Here is a copy of the <a href="http://www.psychiatricrights.org/States/Alaska/CaseXX/EilLilly/InjunctionAppeal/070907EgilmanSettlemengAffidavit.pdf" title="Link to Law Project For Psychiatric Rights: Declaration of David Egilman, M.D., M.P.H. [PDF]" target="_blank">full declaration by Dr. Egilman [PDF]</a>; take from it what you will.</p>
<h3>Afterword</h3>
<p>Let&#8217;s be clear:  I have no idea why Dr. Egilman settled with Eli Lilly, nor can I determine the sincerity of his self-professed public health crusade.  All I know of him and his activities are what I&#8217;ve read and researched, and the picture that doing so presents.  It&#8217;s quite possible he simply settled to avoid the time and financial costs of a prolonged legal battle with the Big Company with Much Deeper Pockets.  Then again, the same time/cost benefit analysis could just as easily apply as to why Eli Lilly settled with its class action plaintiffs.</p>
<p>For those who automatically assume the worst about drug companies, particularly with respect to drug safety disclosures, an op-ed in last week&#8217;s <em>Wall Street Journal</em> by Dr. Scott Gottlieb, a former deputy commissioner of the FDA, <a href="http://online.wsj.com/article/SB119025325354433415.html" title="Link to Wall Street Journal [preview]: Trial-Lawyer Kowtow" target="_blank">offers perspective worth considering</a>.  The reality is that drug companies don&#8217;t have <em>carte blanche</em> freedom to add risk information to drug labels; that&#8217;s the FDA&#8217;s call, believe it or not, and they&#8217;ve told drug companies in the past to scrub warning language that it deemed superfluous.  And now Congress is considering legislation that would make it even easier for trial lawyers to belly up to the &#8220;undisclosed risk&#8221; trough.</p>
<p>In the case of Zyprexa, Lilly <a href="http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=916306&amp;TICK=LLY&amp;STORY=/www/story/12-21-2006/0004495614&amp;EDATE=Dec+21,+2006" title="Link to Eli Lilly News: Eli Lilly and Company Statement Regarding Today's New York Times Article - December 21, 2006" target="_blank">maintains that the labeling provided to physicians</a> identified &#8220;the potentially clinically-significant weight gain that was observed in more than half of all patients treated long-term with Zyprexa, as well as the diabetes-related adverse events observed in clinical trials, including diabetes, hyperglycemia and diabetic ketoacidosis.&#8221;  Perhaps the real issue is that physicians are simply relying far too much on aggressive sales reps to tell them the ups and downs of a drug, rather than actually taking the time to independently read its FDA-approved label.  I&#8217;m not sure which scenario scares me more…</p>
<p>Eli Lilly quite understandably does not appear to be seeking any legal retribution from the <em>Times</em>, which is probably the best course of action for them.  It&#8217;s generally accepted as a given in public relations that it is foolhardy for a major company, particularly one in an <a href="http://www.pharmalive.com/magazines/medad/view.cfm?articleID=5067" title="Link to PharmaLive Med Ad News: 21st Annual Report: Belt tightens on big pharma" target="_blank">&#8220;easy target&#8221; industry that is held in low public esteem</a>, to aggressively attack a powerful newspaper that buys ink by the barrel.  Doing so would only heighten awareness of the damaging charges Lilly seeks to rebut and further exacerbate its reputational damage.</p>
<p>There are a great many legal and ethical themes at play in the Eli Lilly/Dr. Egilman/<em>New York Times</em> saga, but at the crux of it all are issues of transparency and accountability – on all fronts.  While the media has done an impressive job in recent years guard-dogging the public&#8217;s interests by demanding more clarity and less concealment from our corporate leaders, it must also be willing to sound a similar clarion call when other members of the Fourth Estate totter in living up to the exacting standards they so rightfully advocate.</p>
<p>As the saying goes: &#8220;If you&#8217;re going to talk the talk, you&#8217;ve got to walk the walk.&#8221;</p>
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