Drugmaker to plead guilty to 3 criminal charges
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.