Ditched Deal Costs AMA $9.9 Million
From Times Wire Reports
The American Medical Assn. will pay Sunbeam Corp. $9.9 million after pulling out of a five-year deal in which the doctors’ group was to endorse the company’s products in exchange for royalties. Widely regarded as unethical, the controversy led to the dismissal of five AMA staff members. The settlement averts a trial, which had been set for Nov. 2 in federal court in Chicago. The AMA backed out of the deal after many criticized it because the group did not plan to test the products.
