Purdue Pharma, the creator of OxyContin, has agreed to plead guilty to three federal criminal charges for its part in creating the nation’s opioid crisis and will pay more than $8 billion and shut down the company.
What We Know:
- The charges involve conspiracy to defraud the United States and violating federal anti-kickback laws. The money will be used for opioid treatment and abatement programs. The privately held company has accepted to pay a $3.5 billion fine and relinquish an extra $2 billion in past profits, in addition to the $2.8 billion it agreed to pay in civil liability.
- The company does not have $8 billion in cash handy to pay the fines. So Purdue will be terminated as part of the settlement, and its assets will be used to create a new “public benefit company” controlled by a trust or similar item designed for the benefit of the American public.
- The Justice Department said it would perform entirely in the public interest rather than to maximize profits. Its projected earnings will go to paying the fines and penalties, which in turn will be used to battle the opioid crisis.
- That new company will keep producing painkillers such as OxyContin and drugs to deal with opioid overdose. Deputy Attorney General Jeffrey Rosen, who published the settlement, defended the new company’s plans to continue to sell that drug, stating there are authorized uses for painkillers such as OxyContin.
- The idea is for the company to make life-saving overdose rescue drugs and medically assisted treatment medications available at steep discounts to communities dealing with the opioid crisis.
- The company that had filed for bankruptcy in 2019 pleaded guilty to violating federal anti-kickback laws, as it paid doctors apparently to write more opioid prescriptions.
- The Justice Department also reached a separate $225 million civil settlement with the former owners of Purdue Pharma, the Sackler family. Although, the Sackler family, as well as other current and former employees and owners of the company, face the chance that federal criminal charges will be filed against them.
- Purdue Chairman Steve Miller, who joined Purdue in 2018, stated:
“Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice.” “Purdue today is a very different company. We have made significant changes to our leadership, operations, governance, and oversight.”
This proposal will be executed as quickly as possible to help address the needs of people who suffer from opioid addiction and abuse.
