OXYCONTIN MAKER PURDUE PHARMA PLEADS GUILTY IN U.S. OPIOID CASES

Purdue Pharma LP pleaded guilty to criminal charges over the handling of its addictive prescription painkiller OxyContin, capping a deal with federal prosecutors to resolve an investigation into the drugmaker’s role in the US opioid crisis, Mike Spector reported for Reuters.

During a court hearing before US District Judge Madeline Cox Arleo in New Jersey, Purdue pleaded guilty to three felonies covering widespread misconduct. The criminal violations included conspiring to defraud U.S. officials and pay illegal kickbacks to both doctors and an electronic healthcare records vendor called Practice Fusion here, all to help keep opioid prescriptions flowing.

Members of the billionaire Sackler family who own Purdue and previously sat on the company’s board were not part of the aforementioned court proceedings and have not been criminally charged. They agreed in October to pay a separate $225 million civil penalty for allegedly causing false claims for OxyContin to be made to government healthcare programs such as Medicare. They have denied the allegations. Assistant US Attorney J. Stephen Ferketic said officials reserved the right to prosecute individuals associated with Purdue, including owners, officers and directors. Sackler family members have said they acted ethically and responsibly while serving on Purdue’s board and were assured the company’s sales and marketing practices complied with legal and regulatory requirements.

Purdue Chairman Steve Miller entered the guilty plea on the company’s behalf and admitted to its criminal conduct under questioning from Ferketic. Of the three criminal counts against Purdue, two were for violations of a federal anti-kickback law while another charged the Stamford, Connecticut-based company with defrauding the United States and violating the Food, Drug and Cosmetic Act. Purdue’s plea deal carries more than $5.5 billion in penalties, most of which will go unpaid. A $3.54 billion criminal fine is set to be considered alongside trillions of dollars in unsecured claims as part of Purdue’s bankruptcy proceedings. Purdue agreed to pay $225 million toward a $2 billion criminal forfeiture, with the Justice Department foregoing the rest if the company completes a bankruptcy reorganization dissolving itself and shifting assets to a “public benefit company” or similar entity that steers the $1.775 billion unpaid portion to thousands of U.S. communities suing it over the opioid crisis.