Wednesday, August 19, 2009

Don't Pick Fights with Those Who Buy Ink by the Barrel

Here's an interesting crisis communications strategy you won't find in any textbook: file a lawsuit against the newspaper that shed light on your alleged misconduct.

That's exactly what generic drug maker Mylan Inc. did today, demanding the Pittsburgh Post-Gazette immediately return “internal confidential and proprietary documents” the company claims were “improperly obtained without Mylan’s knowledge or consent.”

In Mylan's defense, the FDA investigated the allegations of production irregularities at Mylan's Morgantown, W.Va., plant and found no problems. But Mylan's stock took a major hit as a result of the newspaper's coverage, so it's understandable the company would be upset.

The paper says it stands by its newsgathering and reporting. Of course, the Fourth Estate has Constitutional protections from surrendering sources, so unless it can be proven that the confidential information was obtained illegally -- which Mylan has not alleged -- I can't imagine the courts forcing them to return the material.

That said, the company is also seeking compensatory damages for the impact the paper's actions had on the company, which is a whole different ballgame. A court may well determine the paper acted improperly in printing the information, whether as a result of misinterpretation or sheer recklessness. It'll be interesting to see how this story plays out.

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