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takyon [soylentnews.org] writes:

OxyContin maker to plead guilty to federal criminal charges, pay $8 billion, and will close the company [cnn.com]

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 [cnn.com]. 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 [archive.org], Bloomberg [bloomberg.com], NBC [nbcnews.com], and CBS [cbsnews.com].

Previously:

*SPOILER* (click to show) *SPOILER* (click to hide)

City of Everett, Washington Sues OxyContin Maker Purdue Pharma [soylentnews.org]
South Carolina Sues OxyContin Maker Purdue [soylentnews.org]
Purdue Pharma to Cut Sales Force, Stop Marketing Opioids to Doctors [soylentnews.org]
Colorado Attorney General Sues Purdue Pharma [soylentnews.org]
OxyContin Maker Purdue Pharma May File for Bankruptcy to Disrupt Lawsuits [soylentnews.org]
After Pushing Addictive OxyContin, Purdue Now Pursuing Overdose Antidote [soylentnews.org]
Purdue Pharma to Pay $270 Million Settlement to Oklahoma [soylentnews.org]
Report Finds that Purdue Pharma Infiltrated WHO, Manipulated Opioid Policies to Boost Sales [soylentnews.org]
Opioid Talks Fail, Purdue Bankruptcy Filing Expected [soylentnews.org]
Makers of OxiCotin, Purdue Pharma, Files Reorganization Chapter 11 "Bankrupty" [soylentnews.org]
Sacklers Threaten to Scrap Opioid Deal If They Aren't Shielded From Lawsuits [soylentnews.org]
Report: Sacklers Using Fake Doctors, False Marketing to Sell OxyContin in China [soylentnews.org]
OxyContin Maker Purdue Pharma LP Said to be Brokering Plea Deal in Criminal Probe [soylentnews.org]

Original Submission