Tennessee Democratic Party Chairman Bob Tuke released this statement after the U.S. Justice Department's announcement that Bristol-based King Pharmaceuticals Inc. has agreed to pay $124 million to resolve claims that it underpaid rebates to state Medicaid programs and overcharged various federal and state entities for its drug products:
“We’re glad the U.S. Justice Department has reached an agreement with King Pharmaceuticals that will allow the taxpayers to recoup at least some of the funds owed to them," said Tuke, a Nashville attorney who specializes in corporate and securities law. "At a time when TennCare and other state Medicaid programs are increasingly strained, it’s important for the nation’s drug companies to live up to their financial and moral commitments.”
Meanwhile, Tuke said there remains another issue that needs to be settled regarding the Tennessee Republican Party, King Pharmaceuticals and John Gregory, who founded the company.
“Over the past few years, John Gregory and King Pharmaceuticals have funneled millions of dollars into the accounts of the Tennessee Republican Party and various political action committees and individual campaigns,” Tuke said. “Republican politicians in this state need to do some deep soul-searching if they intend to continue accepting money from the Gregory family and King Pharmaceuticals."
He added, “We’re putting the Republicans on notice today: If you take another dime of this dirty money, the voters are going to hear about it.”
He also called on Senate Majority Leader Ron Ramsey and other Republicans in the Tennessee General Assembly "to take a stand against political contributions by John Gregory and other individuals with ties to King Pharmaceuticals Inc."
He said he made the call in advance of today’s meeting of the General Assembly’s Joint Legislative Committee on Ethics and following yesterday's announcement by the U.S. Justice Department that Bristol-based King Pharmaceuticals will have to pay $124 million to settle claims that it underpaid rebates to state Medicaid programs and overcharged various federal and state entities for its drug products. The federal investigation and settlement was the result of a whistleblower complaint.
“This is taxpayer money that was taken away from health care for the poor, the sick and the disabled. Unfortunately, state Medicaid programs, including TennCare, only are getting back a fraction of what's really owed to them.”
Tuke said political contributions from Gregory, who founded King Pharmaceuticals, "now clearly are tainted because of the drug maker’s questionable business practices that occurred under his management. In modern politics, this is as close as it gets to blood money. Any member of the Tennessee General Assembly who has taken money with ties to John Gregory or King Pharmaceuticals ought to be ashamed. They ought to return it immediately, or resign."
In 2004, John Gregory and the Gregory family gave at least $285,000 to his personal political action committee, Tennessee Conservative PAC, which then funneled contributions to state legislators including State Senators Ramsey and Diane Black and State Reps. Jerome Cochran, Steve Godsey, Matthew Hill, Jason Mumpower and Jack Sharp, the Tuke statement said. This year alone, the Gregorys have given the PAC at least $50,000, it was stated.
Additionally, John Gregory and the Gregory family gave at least $320,000 in 2004 and $345,000 so far in 2005 to the Tennessee Legislative Campaign Committee, which is run by the Tennessee Republican Party, it was stated.
In addition to calling on lawmakers to take a stand, Tuke sent a letter to Republican Party Chairman Bob Davis urging him to return any contributions with ties to John Gregory and King Pharmaceuticals.
He chided Republicans who in news reports today defended Gregory as “a good Christian man.” He said, “Taking money from ordinary citizens and funneling it into personal wealth and political contributions is inherently un-Christian. Anyone who received such contributions ought to send them back."