Fed charges for pharma distributor

For the first time, federal prosecutors slapped a pharmaceutical distributor, including two former executives, with criminal charges Tuesday for its role in the opioid crisis.

The landmark case against the Rochester Drug Cooperative, the nation’s sixth-largest pill distributor, represents a new approach by law enforcement combating the ravages of oxycodone, fentanyl and other downers. Prosecutors charged executives with offenses normally saved for drug kingpins rather than hitting them with civil penalties.

Prosecutors say between 2012 and 2017, the company knowingly distributed opioids to shady pharmacies that gave oxycodone and fentanyl to people who did not need them. From 2012 to 2016, Rochester Drug’s sales of oxycodone tablets grew to 42.2 million from 4.7 million, an increase of 800%. During that period, its fentanyl sales rose to more than 1.3 million doses from about 63,000 doses — a near-2,000% spike.

“Why did they do it? The answer is greed,” Manhattan U.S. Attorney Geoffrey Berman said Tuesday.

Rochester Drug ignored warning signs about pharmacies that dispensed mainly opioids in large quantities and accepted prescriptions from doctors on watch lists, prosecutors said. Ex-Rochester Drug CEO Laurence Doud (inset) is accused of narcotics conspiracy and conspiracy to defraud the U.S. Another former exec, William Pietruszewski, pleaded guilty to the same charges and is cooperating with prosecutors.

“Mr. Doud is being framed, plain and simple,” his attorney Robert Gottlieb said. “The government has it all wrong and is being used by others to cover up their wrongdoing. Mr. Doud will fight these false charges to his last breath.”

Under the terms of its deal, Rochester Drug admitted wrongdoing and pay a $20 million fine.

“We made mistakes,” said a company spokesman. “[Rochester Drug Cooperative] understands these mistakes, directed by former management, have serious consequences.”