Sacklers to testify before panel
Purdue Pharma CEO also to appear before committee investigating U.S. opioid crisis
STAMFORD — Purdue Pharma’s CEO and two Sackler family members who own the bankrupt company have agreed to testify Thursday at a virtual hearing by a U.S. House of Representatives committee that will examine the company’s alleged role in fueling the national opioid crisis, after some of them faced possible subpoenas to appear before the panel.
Members of the Democratic-controlled committee announced Monday that the trio would appear, marking what a committee statement saidwould be one of the first times that Sackler family members had testified in public under oath.
David Sackler and Kathe Sackler’s appearance would come nearly two months after the Sacklers, who own Purdue, agreed to a $225 million settlement with the U.S. Justice Department to resolve allegations of marketing misconduct. The Sacklers did not admit any wrongdoing related to the settlement.
At the same time, the OxyContin maker agreed to an $8 billion settlement with the Justice Department and last month pleaded guilty to criminal charges of defrauding the government and violating anti-kickback laws.
No individuals, however, have faced criminal charges related to those settlements, a lack of prosecution that has been condemned by many Democratic Congressional members.
In a statement, Purdue confirmed Monday that CEO Craig Landau had agreed to testify, adding that the company has “consistently cooperated” with the committee. The statement said that Landau’s testimony will include discussion of the company’s proposed multibillion-dollar settlement of the approximately 3,000 local and state lawsuits that allege the company stoked the opioid epidemic with deceptive OxyContin marketing. Despite the submission of the proposal through its bankruptcy case, the company has denied the lawsuits’ accusations.
Through a spokesman, the Sacklers declined to comment on the hearing.
The announcement of the hearing appearances follows weeks of pressure from committee members on several of the Sacklers who own the company, formerly served on its board and were named as defendants in Connecticut’s lawsuit against the company. On Nov. 24, committee Chairwoman Carolyn Maloney, D-N.Y., sent letters to four of the Sacklers — Richard Sackler, David Sackler, Kathe Sackler and Mortimer D.A. Sackler — requesting their voluntary testimony at the hearing, which was originally scheduled for Dec. 8.
After “numerous” attempts by committee staff to confirm the Sacklers’ attendance, attorneys for the Sacklers sent letters on Dec. 1 that declined the invitations to testify and cited ongoing court proceedings, according to committee members.
“In response, you and your clients have provided no indication that they will participate voluntarily,” Maloney wrote back. “Indeed, your clients have not agreed to testify at a hearing before the committee at any time — ever. As a result, it appears that your clients are not engaging in this process in good faith.”
Maloney then announced that the committee would move forward with the hearing and asked the Sacklers’ legal counsel to inform the panel whether their clients would participate voluntarily or require subpoenas for their testimony.
Kathe Sackler and David Sackler’s subsequent agreement to testify precludes the need for subpoenas.
Ahead of the hearing, Maloney issued a memo, which outlined documents obtained by the committee that assert the OxyContin business helped “stretch” Purdue’s financial targets and increase earnings. The documents also show how the Sacklers pressured Purdue executives to grow the market share for OxyContin and other opioids, including by targeting highvolume prescribers and pushing higher-strength doses, according to committee members.
The hearing, which is scheduled to start 9 a.m. Thursday, will be livestreamed on YouTube and on its website.