The investigation into generic drug price fixing has been picking up steam, the equity analysts refuse to recognize the potential fines in their models. According to this article in the Hartford Courant: 16 companies and 300 drugs are under investigation for what assistant attorney general and antitrust investigator Joseph Nielsen describes, "This is most likely the largest cartel in the history of the United States."
Although GAAP accounting standards don't require the company itself to record a contingency for the potential fines - the sell side really should have attempted this analysis by now. Below