CONTENTS
- 1. The Client Who Requested Assistance in the Pharmaceutical Company Rebate Case
- - How the Administrative Disposition Came About
- 2. Statutes Related to the Pharmaceutical Company Rebate Case
- - Dual Punishment System for Rebates
- 3. Areas of Assistance With Pharmaceutical Company Rebates
- - Emphasizing the Timing of the Administrative Disposition
- - Emphasizing the Individual Employee's Tort
- - Advisory on Preventing Future Legal Disputes
- 4. Result of Assistance With Pharmaceutical Company Rebates: “Revocation of the Disposition”
- - If You Need Assistance With a Pharmaceutical Company Rebate Case
1. The Client Who Requested Assistance in the Pharmaceutical Company Rebate Case
This is a case in which a pharmaceutical company involved in a pharmaceutical rebate matter received an administrative disposition such as a business suspension, but obtained a judgment revoking the disposition with the assistance of a corporate attorney at Daeryun.
How the Administrative Disposition Came About
The client who came to Daeryun's corporate attorney was a person affiliated with pharmaceutical company C.
The client received a suspension of business for several months on the grounds that some of the company's employees had engaged in illegal rebate conduct.
However, the client expressed a sense of injustice, stating that a rather heavy disposition had been imposed for a problem that arose from the illegal conduct of an individual employee.
Accordingly, in order to obtain a decision revoking the suspension of business, the client came to Daeryun's 🔗corporate attorney, who has handled numerous rebate cases, and requested assistance.
2. Statutes Related to the Pharmaceutical Company Rebate Case
Because the client's administrative disposition was made a long time after the violation occurred, the lawfulness of the administrative disposition arising from this was the issue.
The relevant statute is Article 23 (1) of the Framework Act on Administrative Affairs.
▶ Framework Act on Administrative Affairs, Article 23 (Exclusion Period for Sanction Dispositions)
Dual Punishment System for Rebates
A business operator or medical professional who provides or receives an unlawful rebate is punished under both the Medical Service Act and the Pharmaceutical Affairs Act under the dual-punishment system for rebates.
▶ Pharmaceutical Affairs Act Article 76 (Revocation of License, Suspension of Business, etc.)
A manufacturer of drugs and the like, a person who has obtained item approval, a person who has registered an active pharmaceutical ingredient, an importer, a person who has obtained approval of a clinical trial plan, or a pharmacy founder, a drug seller, or a drug sales-promotion business operator
▷ Disposition
- Revocation of the license, approval, or registration, or revocation of the acceptance of a report
- Closure of the consigned manufacturing and sales establishment or manufacturing site
- Closure of the place of business
- An order prohibiting item manufacturing or item importation, or a suspension of all or part of the business within a period of one year
3. Areas of Assistance With Pharmaceutical Company Rebates
The corporate attorney formed a task force and closely reviewed the relevant statutes and precedents, and meticulously analyzed the materials submitted by the client side and the results of the internal audit.
In addition, the corporate attorney conducted a factual investigation into the timing of the disposition and the period elapsed since the violation, established a response strategy suited to the matter, and provided practical assistance.
Thereafter, with the goal of revoking the administrative disposition, the corporate attorney made the following arguments.
Emphasizing the Timing of the Administrative Disposition
The corporate attorney challenged the timing of the disposition, emphasizing that the administrative agency’s disposition was made an excessively long time after the incident occurred.
Under Article 23(1) of the Framework Act on Administrative Matters, it is expressly provided that a sanction disposition may not be imposed on a violation once 5 years have passed from the date the violation ended
On the basis of this statutory provision, the attorney argued that the matter could be regarded as an abuse of the administrative agency’s discretionary power.
Emphasizing the Individual Employee's Tort
The corporate attorney emphasized that the illegal rebate conduct in this case arose from the personal unlawful acts of some employees.
In addition, considering that the rebate amount provided by the employees was not large and that corrective measures were taken within the company, the corporate attorney argued that the administrative disposition was unjust.
Advisory on Preventing Future Legal Disputes
The corporate attorney provided legal advisory to prevent similar legal disputes from arising in the future.
The attorney prepared internal regulations and policy improvement proposals to minimize the legal risks related to rebates, and presented measures to strengthen employee education on the relevant statutes.
The attorney also provided preemptive legal review and procedural advice to reduce future friction with administrative agencies, supporting the client in maintaining long-term stability.
4. Result of Assistance With Pharmaceutical Company Rebates: “Revocation of the Disposition”
The court, accepting the corporate attorney's arguments, rendered a judgment revoking the administrative disposition.
In the end, the client was able to avoid an unreasonable disposition, and the company was also able to secure legal stability.
If You Need Assistance With a Pharmaceutical Company Rebate Case
The above case was an example of a pharmaceutical company that received an administrative disposition for illegal rebate conduct but, with the assistance of a corporate attorney, had the disposition revoked.
As such, if you are implicated in an illegal rebate, the impact on a company's trust and financial stability is significant, so accurate analysis and a strategic response by an experienced specialized attorney are needed.
Daeryun Law Firm has numerous specialized attorneys with broad expertise in the corporate legal field and presents systematic and strategic solutions even for complex legal issues.
In addition, through a system that allows rapid collaboration with experts in various fields, such as accountants and tax accountants, we provide more refined advice and assistance.
If you are implicated in a pharmaceutical company rebate case and need assistance and legal advice, please request assistance at any time through the 🔗legal consultation reservation.
See More
Watch related video content
for this case study.
Meet Daeryun Law Firm’s corporate legal and tax administration experts!
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.
