Nursing & Healthcare News
Purdue to Pay the Piper?
Pharma giant agrees to accept criminal liability for opioid marketing
- Purdue agrees to civil and criminal penalties
- Its opioid business would become a public trust
- State attorneys general are outraged
Purdue Pharma and the U.S. Department of Justice (DOJ) have agreed to a settlement deal that would see the embattled OxyContin manufacturer accept some criminal liability for its role in the opioid crisis while continuing Purdue’s opioid business as a public benefit company.
$8.3 Billion Plea Deal
Purdue Pharma applied for federal bankruptcy protection in September 2019, but the company’s legal troubles are far from over. Purdue and its owners, the Sackler family, are still facing many civil and criminal complaints at both the state and federal levels, including allegations that the company violated federal anti-kickback laws and lied to the DEA about opioid diversion.
Under the proposed federal settlement deal — which must still be approved by the bankruptcy court — the corporation would plead guilty to three criminal conspiracy charges and pay a $3.5 billion fine. Purdue would also pay an additional $2.8 billion to settle civil claims under the federal False Claims Act. Since the company doesn’t have that much cash, these amounts would be treated as additional unsecured bankruptcy claims, like most of Purdue’s other outstanding debts.