Trump vows to ‘love and cherish' Medicaid — while Republicans plot cuts for savings
In a written response submitted to the Senate Finance Committee, Kennedy said he was amending his ethics pledge and planned to "divest my interest in this litigation."
Any proceeds stemming from the suit will instead go to one of his sons, according to a copy of his correspondence obtained by POLITICO.
The arrangement is still likely to face scrutiny from ethics experts, and the forthcoming amendments didn't appease Sen. Elizabeth Warren (D-Mass.), who first pressed Kennedy on his financial ties to pharma litigation on Wednesday — a Finance Committee exchange in which he refused to commit to forgoing his stake in litigation against the drug company Merck.
Kennedy initially stood to collect 10 percent of any fees awarded in the lawsuit over Merck's HPV vaccine, through a referral arrangement with the law firm Wisner Baum.
Federal conflict-of-interest law forbids government workers from 'participating personally and substantially in official matters where they have a financial interest,' according to the Office of Government Ethics, the independent agency that oversees federal nominees' pledges. That prohibition also extends to the interests of their spouses, partners and minor children.
Kennedy's promise to direct certain payments to an adult son exploits 'a loophole in this law that it's clear that this arrangement is designed to sort of fall into,' said Donald Sherman, executive director and chief counsel at Citizens for Responsibility and Ethics in Washington, a watchdog group.
The HHS nominee had already made roughly $2.5 million for referring cases to Wisner Baum over the last few years, according to his financial disclosures. While he promised to end that arrangement, Kennedy in an ethics agreement earlier this month said he planned to "retain a contingency fee interest" in cases where the U.S. was not a party to the lawsuit or didn't hold a direct or substantial stake.
Democrats had blasted that decision as a conflict of interest, arguing that he would be responsible for regulating Merck as HHS secretary at the same time as he stood to benefit from an ongoing legal case against it.
'Kennedy can kill off access to vaccines and make millions of dollars while he does it,' Warren said Wednesday while questioning him. 'Kids might die, but Robert Kennedy can keep cashing in.'
Kennedy has yet to receive any payments related to cases he referred to the firm for its Gardasil lawsuit, which claims that Merck concealed the risks of serious side effects from Gardasil when seeking FDA approval. The company denies the allegations.
Should Wisner Baum's lawsuit be successful, it's unclear which of Kennedy's four sons would receive the fees owed to him. One of Kennedy's sons, Conor Kennedy, is an attorney in Wisner Baum's Los Angeles office.
Kennedy has also referred cases to the firm pertaining to damages from the 2018 Woolsey fire in Los Angeles and from cancer cases that patients claim are linked to the weed-killer Roundup, according to his disclosures.
A spokesperson for Kennedy did not respond to a request for comment.
The pending amendment to his ethics pledge comes after Kennedy's statements during two confirmation hearings this week created confusion around his ethics disclosure, which contained promises that seemingly contradicted each other. An HHS ethics official signed off on Kennedy's initial agreement on Jan. 21.
Warren said in a statement Friday that Kennedy's responses 'raise new questions about the scope of his conflicts' and should prompt Senate leadership to delay any nomination vote until his revised ethics pledge is 'thoroughly reviewed.'
Kennedy told senators he steered 'many hundreds of cases' to Wisner Baum and that it was 'impossible' to disclose all details to the committee 'in the time allotted for my response.'
He said that the federal government is a party to some of the cases he's referred to Wisner Baum and has 'a direct and substantial interest' in others.
'As provided in my Ethics Agreement, I am divesting my interest in all such cases,' Kennedy said in response to senators' questions.
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