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OxyContin Maker Purdue Pharma to Plead Guilty to Three Criminal Charges
OxyContin maker Purdue Pharma to plead guilty to 3 criminal charges as part of an $8 billion-plus settlement
WASHINGTON (AP) — Purdue Pharma, the company that makes OxyContin, the powerful prescription painkiller that experts say helped touch off an epidemic, will plead guilty to three federal criminal charges as part of a settlement of more than $8 billion, Justice Department officials told The Associated Press.
The company will plead guilty to a criminal information being filed Wednesday in federal court in New Jersey to three counts, including conspiracy to defraud the United States and violating federal anti-kickback laws, the officials said.
The deal does not release any of the company's executives or owners — members of the wealthy Sackler family — from criminal liability. A criminal investigation is ongoing.
The officials were not authorized to discuss the investigation publicly and spoke on condition of anonymity.
Also at: Business Insider, CBS News, and ABC News.
Guilty pleas? You seldom see that - these corporates always seem to get away with weasel word statements to the effect, "We acknowledge no wrongdoing blah blah blah . . . "
Purdue Pharma Pleads Guilty to Opioid Crisis Charges, Will Become a Public Benefit Corporation
Purdue Pharma, the maker of OxyContin, has agreed to plead guilty to three federal criminal charges for its role in creating the nation's opioid crisis and will pay more than $8 billion and close down the company.
The money will go to opioid treatment and abatement programs. The privately held company has agreed to pay a $3.5 billion fine as well as forfeit an additional $2 billion in past profits, in addition to the $2.8 billion it agreed to pay in civil liability.
"Purdue Pharma actively thwarted the United States' efforts to ensure compliance and prevent diversion," said Drug Enforcement Administration Assistant Administrator Tim McDermott. "The devastating ripple effect of Purdue's actions left lives lost and others addicted."The company doesn't have $8 billion in cash available to pay the fines. So Purdue will be dissolved as part of the settlement, and its assets will be used to create a new "public benefit company" controlled by a trust or similar entity designed for the benefit of the American public. The Justice Department said it will function entirely in the public interest rather than to maximize profits. Its future earnings will go to paying the fines and penalties, which in turn will be used to combat the opioid crisis.
That new company will continue to produce painkillers such as OxyContin, as well as drugs to deal with opioid overdose. Deputy Attorney General Jeffrey Rosen, who announced the settlement, defended the plans for the new company to continue to sell that drug, saying there are legitimate uses for painkillers such as OxyContin.
Also at The New York Times, Bloomberg, NBC, and CBS.
Previously:
City of Everett, Washington Sues OxyContin Maker Purdue Pharma
South Carolina Sues OxyContin Maker Purdue
Purdue Pharma to Cut Sales Force, Stop Marketing Opioids to Doctors
Colorado Attorney General Sues Purdue Pharma
OxyContin Maker Purdue Pharma May File for Bankruptcy to Disrupt Lawsuits
After Pushing Addictive OxyContin, Purdue Now Pursuing Overdose Antidote
Purdue Pharma to Pay $270 Million Settlement to Oklahoma
Report Finds that Purdue Pharma Infiltrated WHO, Manipulated Opioid Policies to Boost Sales
Opioid Talks Fail, Purdue Bankruptcy Filing Expected
Makers of OxiCotin, Purdue Pharma, Files Reorganization Chapter 11 "Bankrupty"
Sacklers Threaten to Scrap Opioid Deal If They Aren't Shielded From Lawsuits
Report: Sacklers Using Fake Doctors, False Marketing to Sell OxyContin in China
OxyContin Maker Purdue Pharma LP Said to be Brokering Plea Deal in Criminal Probe
(Score: 2) by Snotnose on Thursday October 22 2020, @06:52AM (5 children)
How much did they make peddling their addictive opioids? I'm guessing it was way north of $8 billion.
When the dust settled America realized it was saved by a porn star.
(Score: 1, Interesting) by Anonymous Coward on Thursday October 22 2020, @07:59AM
Just as concerned how many of them are now invested in companies providing services for that $8bil?
(Score: 2, Interesting) by nitehawk214 on Thursday October 22 2020, @02:29PM
Yep, the only way to curtail this stuff is to make sure the executives go to pound-me-in-the-ass prison. No amount of fines will harm them. The shareholders pay that. And if the executives are also shareholders, well, they will arrange to sell off before the share prices bottoms out.
And executives always get a free pass to move on to another company once they ruin the one they are at. The old-boy network always makes sure to hire their friends. This is part of the reason these guys are all board members on each other's companies. It isn't enough to have a golden parachute, there must be a golden landing place for all "temporarily disgraced" billionaires.
"Don't you ever miss the days when you used to be nostalgic?" -Loiosh
(Score: 1, Interesting) by Anonymous Coward on Thursday October 22 2020, @02:35PM
Probably, but that's from the company, the family itself is only giving $250m or so to the fund from what I've read. They will still remain billionaires even if the deal goes through as is. Even if they paid all of the money from their personal finances, they still would be super-wealthy.
Ultimately, without jail, and preferably a death penalty conviction, there's little to discourage future pharmaceutical companies from doing the same thing. They're just giving back some of the ill-begotten gains and appear set to escape any real accountability. They'll still be ultra-wealthy and probably back to other psychopathic tricks very soon.
(Score: 0, Offtopic) by The Mighty Buzzard on Thursday October 22 2020, @03:57PM
At least part of the problem there is that businesses don't get to keep every dime they earn any more than you or I do. Not even of profit. Taxes and expenses take a bite out of everybody, high or low.
My rights don't end where your fear begins.
(Score: 2) by deimtee on Thursday October 22 2020, @04:28PM
Do you really think that the 8 Giga$ will be paid? There is already a lot of card shuffling going on and "the company" is declaring bankruptcy. I think it extremely likely that the fine will end up being owed by a bankrupt shell, while the Sacklers walk away. Might cost them a few million in bribes, but politicians are remarkably cheap.
If you cough while drinking cheap red wine it really cleans out your sinuses.