US opioid crisis: OxyContin maker Purdue Pharma pleads guilty to criminal charges
- Purdue Pharma formally takes responsibility for its part in the US opioid epidemic
- Purdue’s plea deal carries more than US$5.5 billion in penalties, most of which will go unpaid
Purdue Pharma pleaded guilty to criminal charges over the handling of its addictive prescription painkiller OxyContin, capping a deal with federal prosecutors to resolve an investigation into the drugmaker’s role in the US opioid crisis.
During a court hearing conducted remotely on Tuesday before US District Judge Madeline Cox Arleo in New Jersey, Purdue pleaded guilty to three felonies covering widespread misconduct.
The criminal violations included conspiring to defraud US officials and pay illegal kickbacks to both doctors and an electronic health care records vendor called Practice Fusion, all to help keep opioid prescriptions flowing.
Members of the billionaire Sackler family who own Purdue and previously sat on the company’s board were not part of Tuesday’s court proceedings and have not been criminally charged. They agreed in October to pay a separate US$225 million civil penalty for allegedly causing false claims for OxyContin to be made to government health care programmes such as Medicare. They have denied the allegations.
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Assistant US Attorney J. Stephen Ferketic said officials reserved the right to prosecute individuals associated with Purdue, including owners, officers and directors. Sackler family members have said they acted ethically and responsibly while serving on Purdue’s board and were assured the company’s sales and marketing practices complied with legal and regulatory requirements.
Purdue Chairman Steve Miller entered the guilty plea on the company’s behalf and admitted to its criminal conduct under questioning from Ferketic. Of the three criminal counts against Purdue, two were for violations of a federal anti-kickback law while another charged the Stamford, Connecticut-based company with defrauding the United States and violating the Food, Drug and Cosmetic Act.