This Wednesday, Oct. 21, 2020 photo shows Purdue Pharma headquarters in Stamford, Conn. The Justice Department says on Wednesday, Purdue Pharma, the company that makes OxyContin, will plead guilty to three federal criminal charges as part of a settlement of more than $8 billion. OxyContin is the powerful prescription painkiller that experts say helped touch off an opioid epidemic. (AP Photo/Mark Lennihan)

This Wednesday, Oct. 21, 2020 photo shows Purdue Pharma headquarters in Stamford, Conn. The Justice Department says on Wednesday, Purdue Pharma, the company that makes OxyContin, will plead guilty to three federal criminal charges as part of a settlement of more than $8 billion. OxyContin is the powerful prescription painkiller that experts say helped touch off an opioid epidemic. (AP Photo/Mark Lennihan)

OxyContin maker Purdue Pharma to plead to 3 criminal charges in U.S.

Settlement is highest-profile display yet of the feds seeking to hold a major drugmaker responsible for the opioid crisis

Drugmaker Purdue Pharma, the company behind the powerful prescription painkiller OxyContin 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 anti-kickback laws, the officials said, and the agreement will be detailed in a bankruptcy court filing in federal court.

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 highest-profile 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.

It comes less than two weeks before a presidential election where the opioid epidemic has taken a political back seat to the coronavirus pandemic and other issues, and gives President Donald Trump’s administration an example of action on the addiction crisis, which he promised early on in his term.

Ed Bisch, who lost his 18-year-old son to an overdose nearly 20 years ago, said he wants to see people associated with Purdue prosecuted and was glad the Sackler family wasn’t granted immunity.

He blames the company and Sacklers for thousands for deaths. “If it was sold for severe pain only from the beginning, none of this would have happened,” said Bisch, who now lives in Westampton, New Jersey. “But they got greedy.”

Brooke Feldman, a 39-year-old Philadelphia resident who is in recovery from opioid use disorder and is a social worker, said she is glad to see Purdue admit wrongdoing. She said the company had acted for years as “a drug cartel.”

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.”

But members of the Sackler family, once listed as one of the nation’s wealthiest by Forbes magazine, said they had acted “ethically and lawfully” and that company documents required under the settlement to be made public will show that.

“Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice in the agreed statement of facts,” Steve Miller, who became chairman of the company’s board in 2018, said in a statement. No members of the Sackler family remain on that board, though they still own the company.

Family members, in a statement, expressed “deep compassion for people who suffer from opioid addiction and abuse and hope the proposal will be implemented as swiftly as possible to help address their critical needs.”

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, the officials said.

Purdue is also admitting to violating federal anti-kickback 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, according to the officials.

Purdue will make a direct payment to the government of $225 million, which is part of a larger $2 billion criminal forfeiture. In addition to that forfeiture, Purdue also faces a $3.54 billion criminal fine, though that money probably will not be fully collected because it will be taken through a bankruptcy, which includes a large number of other creditors, including thousands of state and local governments. Purdue will also agree to $2.8 billion in damages to resolve its civil liability.

Part of the money from the settlement would go to aid in medication-assisted treatment and other drug programs to combat the opioid epidemic. That part of the arrangement echoes the plan the company is pushing in bankruptcy court and which about half the states oppose.

As part of the plea deal, the company admits it violated federal law and “knowingly and intentionally conspired and agreed with others to aid and abet” the dispensing of medication from doctors “without a legitimate medical purpose and outside the usual course of professional practice,” according to the plea agreement.

While some state attorneys general opposed the prospect of Purdue becoming a public benefit company, the lead lawyers representing 2,800 local governments in lawsuits against Purdue and other drugmakers, distributors and pharmacies put out a statement supporting the principle but saying more work needs to be done.

The Sackler family has already pledged to hand over the company itself plus at least $3 billion to resolve thousands of suits against the Stamford, Connecticut-based drugmaker. The company declared bankruptcy as a way to work out that plan, which could be worth $10 billion to $12 billion over time. In their statement, family members said that is “more than double all Purdue profits the Sackler family retained since the introduction of OxyContin.”

“Both the company and the shareholders are paying a very steep price for what occurred here,” Deputy U.S. Attorney General Jeffrey Rosen said Wednesday.

While there are conflicting views of whether it’s enough, it’s clear the Sacklers’ reputation has taken a hit.

Until recently, the Sackler name was on museum galleries and educational programs around the world because of gifts from family members. But under pressure from activists, institutions from the Louvre in Paris to Tufts University in Massachusetts have dissociated themselves from the family in the last few years.

Michael Balsamo And Geoff Mulvihill, The Associated Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

opioid crisis

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kimberley case counts not at the point for 18 years and older community vaccination, says Interior Health. (File photo)
Many factors considered for smaller community-wide vaccination: Interior Health

East Kootenay resort town’s COVID-19 situation not at the point of community-wide vaccination, say officials

The BC Wildfire Service is urging caution amid forecasts of strong winds throughout the Kamloops Fire Centre. (BC Wildfire Service photo)
Strong winds forecasted for Kamloops Fire Centre, BC Wildfire service urges caution

“Wind can cause grass fires to spread very quickly,” says the BC Wildfire Service

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. THE CANADIAN PRESS/Jonathan Hayward
54 more cases of COVID-19 in Interior Health

Thirty-two people in the region are in hospital with the virus, 11 of them in intensive care

The freed osprey keeps a wary eye on its rescuers after being deposited on its nest. (Photo credit: Greg Hiltz)
Hydro crew in Ashcroft gets osprey rescue call-out they won’t soon forget

Bird was tangled in baling wire hanging from a hydro pole, necessitating a tricky rescue

Hesco baskets were first used outside the Cache Creek fire hall in 2020 (pictured), and have once again been put in place as a pre-emptive measure to safeguard the hall against possible flooding. (Photo credit: Barbara Roden)
Cache Creek taking pre-emptive measures to prevent flooding

Sand and sandbags will soon be available for all residents who need them

Canadian Prime Minister Justin Trudeau and United States President Joe Biden smile as they say farewell following a virtual joint statement in Ottawa, Tuesday, February 23, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau pledges to cut emissions by 40% to 45% by 2030, short of U.S. goal

Trudeau announced target during a virtual climate summit convened by U.S. President Joe Biden

MLA Shirley Bond, right, answers questions during a press conference at Legislature in Victoria, B.C., on February 19, 2019. THE CANADIAN PRESS/Chad Hipolito
Former B.C. gaming minister says she wasn’t told directly about dirty cash flowing to casinos

Shirley Bond said Thursday civil forfeiture, gang violence and gambling addiction were also major concerns in 2011

RCMP Constable Etsell speaks to tourists leaving the area at a police roadblock on Westside Road south of Fintry, B.C., Thursday, July 23, 2009. THE CANADIAN PRESS/ Yvonne Berg
B.C. police say they take ‘exception’ to conducting roadblocks limiting travel

Asking the police to enforce roadblocks exposes officers to further risk and possible COVID-19 infections, says federation president Brian Sauve

As part of the province’s strategy to combat the opioid overdose crisis, take-home naloxone kits have been distributed throughout the province. (Courtesy of Gaëlle Nicolussi)
Vancouver Island could be at its worst point of overdose crises yet: medical health officer

Island Health issued overdose advisories for Victoria, various communities in the last two weeks

BC Hydro released a survey Thursday, April 22. It found that many British Columbians are unintentionally contributing to climate change with their yard maintenance choices. (Pixabay)
Spend a lot of time doing yard work? It might be contributing to climate change

Recent BC Hydro survey finds 60% of homeowners still use gas-powered lawnmowers and yard equipment

Journal de Montreal is seen in Montreal, on Thursday, April 22, 2021. The daily newspaper uses a file picture of Prime Minister Justin Trudeau dressed in traditional Indian clothing during his trip to India to illustrate a story on the Indian variant of the coronavirus. Paul Chiasson/The Canadian Press
Montreal newspaper blasted for front-page photo of Trudeau in India

Trudeau is wearing traditional Indian clothes and holding his hands together in prayer beside a caption that reads, ‘The Indian variant has arrived’

Nanaimo RCMP say a man was injured while pouring gunpowder on a backyard fire in Harewood on Wednesday, April 21. (File photo)
Nanaimo man hospitalized after pouring gunpowder onto backyard fire

RCMP investigating explosion in Harewood also came across a still for making alcohol on property

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. sees 1,006 COVID-19 cases Thursday, ‘alarming’ 502 in hospital

Vaccine bookings for people aged 60 and older set to start

Most Read