Drug Maker Astra Fires U.S. Chief
The chief executive of the pharmaceutical company Astra USA was fired after being accused of replacing older women with younger women, pressuring female employees to have sex with him and embezzling $2 million, Astra’s parent company said Wednesday.
Astra of Sweden, Astra USA’s parent, announced Wednesday that it had ousted Lars Bildman, head of U.S. operations, after investigators confirmed the alleged misconduct and found evidence of embezzlement. Astra also fired a second executive, and two others resigned.
The company is the creator of ulcer medicine Prilosec, the world’s second-best-selling drug.
“This is the end of an unfortunate and distasteful chapter in the history of Astra USA,” said C.G. Johansson, an Astra vice president who headed the investigation. “Our company has been appalled and disappointed with what we have discovered.”
But Astra board member Lars Ramqvist was quoted in a Swedish magazine as saying, “Of course it’s not good with sex scandals, but in the U.S. this has helped us get out Astra’s name without having to pay expensive advertising fees.”
Astra spokesman Staffan Ternby told Associated Press that Ramqvist’s comments “definitely do not” represent the company’s position.
Johansson said there was evidence that Bildman had embezzled about $2 million for personal expenses, including vacations and home renovations.
Bildman’s attorney, Roderick MacLeish, said his client is a victim of “cowardly and disloyal actions by the Swedish parent company” and “scurrilous and untrue allegations brought by disgruntled former employees.”
“This company was audited internally and externally by accountants and attorneys, and the company’s allegations of financial wrongdoing by Lars Bildman are patently false,” he said. He also denied that Bildman sexually harassed any of the company’s female employees.
Eight former employees have alleged in lawsuits that Bildman and at least five other senior executives at Astra USA created a corporate culture that encouraged heavy drinking and sexual harassment, and threatened or terminated employees who objected.
“We’re happy with Astra’s investigation, as long as it’s viewed as a first step,” said John Kuzinevich, a lawyer who represents seven of the eight former employees. “We don’t want it limited to Mr. Bildman being a fall guy.”
Kuzinevich said he is in the final stages of filing another lawsuit against Astra and senior executives on behalf of three former female employees who alleged they were victims of harassment.
Astra also fired Edward Roadman, vice president of marketing and sales for the company’s hospital division; George Aarons, director of institutional business, agreed to resign, the company said.
Jan Larsson, who replaced Bildman as chief executive, said Astra USA will begin training employees in August about sexual harassment to change the culture at the company.
Astra USA’s board voted unanimously to fire Bildman on Tuesday, Johansson said. Anders Lonner, an executive in Sweden who Johansson said knew about improprieties but failed to report them, has also resigned.
Johansson said the first indication the company had of Bildman’s alleged behavior came April 19, when executives at headquarters in Stockholm received a letter from BusinessWeek magazine, which was preparing a story that portrayed an atmosphere of sexual harassment and hard partying at Astra USA. Bildman was suspended April 28 after 16 employees complained of sexual harassment.
The U.S. Equal Employment Opportunity Commission is also questioning Bildman and the company about six complaints, an Astra attorney said. He said 12 former employees have settled sexual harassment suits.
