Fed opioid probe targets drug firms
NEW YORK — Federal prosecutors in Brooklyn have opened a criminal investigation into whether several large drug companies intentionally skirted regulations in order to promote the sale of addictive opioids, according to corporate filings and a person familiar with the matter.
The investigation is part of heightened law enforcement scrutiny into companies that make and distribute prescription painkillers. The companies have faced criminal probes and multibillion-dollar lawsuits for their alleged role in the opioid epidemic.
This year, federal prosecutors in Manhattan and Cincinnati have brought novel cases against companies that distributed opioids to pharmacies, using criminal conspiracy charges typically deployed against drug dealers.
At least six companies disclosed in recent regulatory filings that they received grand jury subpoenas from federal prosecutors in Brooklyn: Johnson & Johnson, Teva Pharmaceutical Industries, Mallinckrodt, Amneal Pharmaceuticals, AmerisourceBergen and McKesson Corp.
The subpoenas, which were first reported by the Wall Street Journal, were sent out as recently as August.
Prosecutors from the Eastern District of New York asked the companies to hand over documents related to the marketing and sale of opioids, the filings said.
Prosecutors are examining whether the companies violated the federal Controlled Substances Act, a broad statute that regulates drug distribution and possession, according to corporate filings and a person familiar with the investigation.
To bring criminal charges under the statute, the government must prove that the companies or their executives intentionally avoided complying with regulations that require them to flag suspicious orders of opioid medications.
A spokesman for Johnson & Johnson said the company’s procedures for distributing opioid medications complied with the law, adding that monitoring data showed the company’s opioids were rarely abused.
A spokeswoman for Teva said the company was cooperating with the subpoena and was confident in its monitoring policies.
A spokesman for Mallinckrodt declined to comment. Officials at AmerisourceBergen, McKesson and Amneal did not respond to requests for comment.