Robins President Fined $10,000
Oct. 13, 1987
RICHMOND, Va. (AP) _ The president of the A.H. Robins Co. was fined $10,000 Monday for failing to follow a federal court order stemming from the company's filing for bankruptcy protection.
U.S. District Judge Robert R. Merhige Jr. issued the contempt of court ruling against E. Claiborne Robins Jr., saying he wanted to end the company's attitude of offering ''excuse after excuse after excuse after excuse.''
Robins has 10 days to appeal.
Merhige ruled that the company had violated his August 1986 order that it recover $7.5 million in illegal payments of pre-bankruptcy debts.
The judge said the Richmond-based pharmaceutical company had been remiss in failing to seek recovery of every dollar it's owed by some employees. Several times during a daylong hearing, Merhige told the company to fire any employee who refuses to cooperate.
George P. Manson Jr., a lawyer for Robins, said not all employees have been notified that some travel reimbursements were improperly paid. He said that no present employee who has been not't yet been asked for reimbursement. Most of the rest is being repaid in installments.
Mabey's report also says that of $8 million in illegal payments and interest, $4.2 million has been repaid. Repayments include $1.93 million in bonus and special retirement payments to Robins executives, the full amount owed.
Mabey's report showed that another $3.75 million remains unrecovered from numerous sources. Robins asked that the recovery program be halted entirely, but Mabey asked that only specific parts be stopped while continuing to pursue about $1.1 million from a variety of creditors.
Merhige ruled that, except for collecting from employees, the repayment program be put on the back burner until after a hearing Nov. 5 to estimate the value of Dalkon Shield claims.
Robins sought Chapter 11 bankruptcy protection in August 1985 in the wake of mounting claims against its Dalkon Shield birth control device.
Merhige said he didn't want to jeopardize Rorer Group Inc.'s proposal to acquire Robins and pay $2.7 billion to Dalkon claimants, other creditors and Robins stockholders.