San Francisco Chronicle

Drugmaker to plead guilty to 3 criminal charges

- By Michael Balsamo and Geoff Mulvihill Michael Balsamo and Geoff Mulvihill are Associated Press writers.

WASHINGTON — Drugmaker Purdue Pharma, the company behind OxyContin, the powerful prescripti­on painkiller that experts say helped touch off an opioid epidemic, will plead guilty to federal criminal charges as part of a settlement of more than $ 8 billion, the Justice Department announced Wednesday.

The deal does not release any of the company’s executives or owners — members of the wealthy Sackler family — from criminal liability, and a criminal investigat­ion is ongoing. Family members said they acted “ethically and lawfully,” but some state attorneys general said the agreement fails to hold the Sacklers accountabl­e.

The company will plead guilty to three counts, including conspiracy to defraud the United States and violating federal antikickba­ck laws, the officials said.

The Sacklers will lose all control over their company, a move already in the works, and

Purdue will become a public benefit company, meaning it will be governed by a trust that has to balance the trust’s interests against those of the American public and public health, officials said.

The settlement is the highestpro­file display yet of the federal government seeking to hold a major drugmaker responsibl­e for an opioid addiction and overdose crisis linked to more than 470,000 deaths in the country since 2000.

Democratic attorneys general criticized the agreement as a

“mere mirage” of justice for victims.

“The federal government had the power here to put the Sacklers in jail, and they didn’t,” Connecticu­t Attorney General William Tong said in a statement. “Instead, they took fines and penalties that Purdue likely will never fully pay.”

As part of the resolution, Purdue is admitting that it impeded the Drug Enforcemen­t Administra­tion by falsely representi­ng that it had maintained an effective program to avoid drug diversion and by reporting misleading informatio­n to the agency to boost the company’s manufactur­ing quotas.

Purdue is also admitting to violating federal antikickba­ck laws by paying doctors, through a speaking program, to induce them to write more prescripti­ons for the company’s opioids and for using electronic health records software to influence the prescripti­on of pain medication.

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