OxyContin maker Purdue Pharma to plead to 3 criminal charges

Published 12:00 pm Wednesday, October 21, 2020

Deputy Attorney General Jeffrey A. Rosen holds a news conference Wednesday, Oct. 21, 2020, at the Justice Department in Washington to announce the results of the global resolution of criminal and civil investigations with Purdue Pharma, the maker OxyContin, the powerful prescription painkiller that experts say helped touch off an opioid epidemic.

WASHINGTON — Purdue Pharma, the company that makes OxyContin, the powerful prescription painkiller that experts say helped touch off an opioid epidemic, will plead guilty to three federal criminal charges as part of a settlement of more than $8 billion, Justice Department officials announced Wednesday, Oct. 21.

The company will plead guilty to three counts, including conspiracy to defraud the United States and violating federal anti-kickback laws, the officials said. The resolution will be detailed in a bankruptcy court filing in federal court.

The deal does not release any of the company’s executives or owners — members of the wealthy Sackler family — from criminal liability, and a criminal investigation is ongoing. One state attorney general said the agreement fails to hold the Sacklers accountable, while family members said they had acted “ethically and lawfully.”

The settlement is the highest-profile display yet of the federal government seeking to hold a major drugmaker responsible for an opioid addiction and overdose crisis linked to more than 470,000 deaths in the country since 2000.

“Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice in the agreed statement of facts,” Steve Miller, who became chairman of the company’s board in 2018, said in a statement. No members of the Sackler family remain on that board, though they still own the company.

The deal comes less than two weeks before a presidential election where the opioid epidemic has taken a political back seat to the coronavirus pandemic and other issues. But it does give President Donald Trump’s administration an example of action on the addiction crisis, which he promised early in his term.

To Massachusetts Attorney General Maura Healey, the Justice Department “failed” and she said in a statement that she was not done with either Purdue or the Sacklers.

“Justice in this case requires exposing the truth and holding the perpetrators accountable, not rushing a settlement to beat an election,” she said.

Purdue will make a direct payment to the government of $225 million.

, which is part of a larger $2 billion criminal forfeiture. Purdue also faces a $3.54 billion criminal fine, though that money probably will not be fully collected because it will be taken through a bankruptcy, which includes a large number of other creditors. Purdue will also agree to $2.8 billion in damages to resolve its civil liability.

Purdue would transform into a public benefit company, meaning it would be governed by a trust that has to balance the trust’s interests against those of the American public and public health, the officials said. As part of the plea deal, the company admits it violated federal law and “knowingly and intentionally conspired and agreed with others to aid and abet” the dispensing of medication from doctors “without a legitimate medical purpose and outside the usual course of professional practice,” according to a copy of the plea agreement obtained by the AP.

The company also is required to cooperate with the ongoing federal investigation and potential other prosecutions.

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