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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: 3, Touché) by DeathMonkey on Thursday October 22 2020, @04:06PM (7 children)
When I see two full generations of people who never needed to work for a living "fluidity in their status" is not the descriptor I would use.
(Score: 1) by khallow on Thursday October 22 2020, @04:56PM (6 children)
Two full generations is still just two generations. Not feeling your seeing here.
(Score: 2) by DeathMonkey on Thursday October 22 2020, @05:18PM (5 children)
Exactly how many trust-fund-baby-generations are required before you would say it is no longer fluid?
(Score: 1) by khallow on Thursday October 22 2020, @05:48PM
(Score: 2) by PartTimeZombie on Friday October 23 2020, @01:42AM (3 children)
It doesn't really matter how many generations, these people are the children and grandchildren of wealth and privilege.
Your ruling class won't be wanting them to go to jail, setting a precedent like that would be bad.
(Score: 1) by khallow on Friday October 23 2020, @03:10PM (2 children)
Does it similarly not really matter to you whether they committed a crime or not?
Your ruling class would also not want someone who destabilizes the system.
(Score: 2) by PartTimeZombie on Monday October 26 2020, @08:01PM (1 child)
Of course it matters, and the courts are where that is supposed to be resolved. The problem is that your court system (and mine) are set up so that if you're rich enough you can evade any punishment.
Of course the ruling class want to avoid destabilizing the system. That is slightly redundant.
(Score: 2, Interesting) by khallow on Tuesday October 27 2020, @02:03AM
We'll see if that happens here. It's worth remembering that just like normal trials, the government still needs to provide evidence of wrong-doing. Just being rich or having the wrong surname, doesn't mean that one is guilty. Having said that, if this were gangbangers from Chicago, the feds would have seized the assets of the company by now and have the entire hierarchy in jail on RICO charges. They definitely are treading timidly on this group.