US pharmaceutical giant Purdue Pharma pleaded guilty to multiple felony charges and agreed to pay over $8 billion in fines and forfeitures as part of a settlement with the government, the Justice Department said in a press release on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 21st October, 2020) US pharmaceutical giant Purdue Pharma pleaded guilty to multiple felony charges and agreed to pay over $8 billion in fines and forfeitures as part of a settlement with the government, the Justice Department said in a press release on Wednesday.
"This morning, subject to court approval, the Department of Justice is announcing a global resolution of our criminal and civil investigations into the opioid manufacturer Purdue Pharma, as well as a civil resolution with members of the Sackler family who comprise the shareholders of the company," Deputy Attorney General Jeffrey Rosen said in his prepared remarks.
Purdue Pharma, owned by the Sackler family, pleaded guilty to one count of dual-object conspiracy to defraud the United States and to violate the food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute, release said.
As part of the settlement, Purdue Pharma has agreed to pay a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture as well as a $2.8 billion to resolve a civil lawsuit. The Sackler family will pay an additional $225 million to resolve its civil liability, according to the press release.
The agreement stipulates that Purdue Pharma will be dissolved, the Sackler family would have to relinquish control of the company and the pharmaceutical giant would be rebranded as a new public benefit company owned by a public trust.
The settlement is pending court approval.
Purdue Pharma has been under investigation and hit with thousands of lawsuits for its role in the opioid addiction crisis that has led to record level overdoes throughout the United States dating back to the late 1990s. According to the US National Health Institute, Purdue Pharma falsely claimed in advertisements and in statements to federal regulators that the company's main product, an opioid painkiller known as OxyContin, was not addictive.
