Stories
Slash Boxes
Comments

SoylentNews is people

posted by Fnord666 on Thursday October 22 2020, @06:28AM   Printer-friendly
from the corporations-are-people-too dept.

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

OxyContin maker to plead guilty to federal criminal charges, pay $8 billion, and will close the company

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:


Original Submission


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 2) by DeathMonkey on Thursday October 22 2020, @05:18PM (5 children)

    by DeathMonkey (1380) on Thursday October 22 2020, @05:18PM (#1067576) Journal

    Exactly how many trust-fund-baby-generations are required before you would say it is no longer fluid?

    Starting Score:    1  point
    Karma-Bonus Modifier   +1  

    Total Score:   2  
  • (Score: 1) by khallow on Thursday October 22 2020, @05:48PM

    by khallow (3766) Subscriber Badge on Thursday October 22 2020, @05:48PM (#1067593) Journal
    About four or five, assuming substantial exponential increase in population through birth and marriage and that they don't have more billionaire generating relatives. Here, there really were three good businessmen in generation 0. That covers a lot of trust-fund babies. I think we're already seeing the departure of future generations from trust-fund baby status.
  • (Score: 2) by PartTimeZombie on Friday October 23 2020, @01:42AM (3 children)

    by PartTimeZombie (4827) on Friday October 23 2020, @01:42AM (#1067760)

    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)

      by khallow (3766) Subscriber Badge on Friday October 23 2020, @03:10PM (#1067903) Journal

      It doesn't really matter how many generations, these people are the children and grandchildren of wealth and privilege.

      Does it similarly not really matter to you whether they committed a crime or not?

      Your ruling class won't be wanting them to go to jail, setting a precedent like that would be bad.

      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)

        by PartTimeZombie (4827) on Monday October 26 2020, @08:01PM (#1069030)

        Does it similarly not really matter to you whether they committed a crime or not?

        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

          by khallow (3766) Subscriber Badge on Tuesday October 27 2020, @02:03AM (#1069153) Journal

          The problem is that your court system (and mine) are set up so that if you're rich enough you can evade any punishment.

          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.