Home Business and Finance Purdue will Plead Guilty over Opioid Practices

Purdue will Plead Guilty over Opioid Practices

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OxyContin maker Purdue Pharma agreed to plead guilty to criminal charges over its handling of its prescription opioid OxyContin on Wednesday afternoon, in a deal with United States prosecutors that sidestepped paying billions of dollars in penalties and stopped short of criminally charging the Sackler family owners.

OxyContin maker Purdue Pharma agreed to plead guilty to criminal charges over its handling of its prescription opioid OxyContin on Wednesday afternoon, in a deal with United States prosecutors that sidestepped paying billions of dollars in penalties and stopped short of criminally charging the Sackler family owners.

In a far-reaching deal, the company formally admitted to criminal conduct related to distribution of its painkillers and agreed to pay $225 million to resolve investigations from the United States Justice Department.

Prosecutors imposed major penalties exceeding $8 billion against the OxyContin maker, though the lion’s share will go largely unpaid.

The company agreed to pay $225 million toward a $2 billion criminal forfeiture, with the Justice Department foregoing the rest if Purdue completes a bankruptcy reorganization dissolving itself and shifting assets to a “public benefit company,” that steers the $1.775 billion unpaid portion to thousands of American communities that are suing it over the opioid crisis.

According to a Business Insider report, court records revealed that members of the billionaire Sackler family who own the company agreed to pay a separate $225 million civil penalty for causing false claims for OxyContin to be made to government healthcare programs such as Medicare. The family denied allegations prosecutors lodged in the civil case.