Gavin Howe
Purdue Pharma, the company behind the powerful prescription painkiller OxyContin, has admitted to violating federal anti-kickback laws by paying doctors to write more prescriptions for their opioids. The company will plead guilty to three criminal charges, including conspiracy to defraud the United States, as part of a settlement of more than $8 billion. Purdue will make a direct payment to the government of $225 million, which is part of a larger $2 billion criminal forfeiture. In addition, Purdue faces a $3.54 billion criminal fine.
| Characteristics | Values |
|---|---|
| Violating federal anti-kickback laws | Paying doctors to write more opioid prescriptions |
| Conspiracy to defraud the United States | |
| Using electronic health records software to influence the prescription of pain medication |
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What You'll Learn
Conspiracy to defraud the United States
Purdue Pharma, the company behind the powerful prescription painkiller OxyContin, has pleaded guilty to three criminal charges, including conspiracy to defraud the United States. The company admitted to violating federal anti-kickback laws by paying doctors to induce them to write more prescriptions for the company's opioids. Purdue also used electronic health records software to influence the prescription of pain medication. This was done through a speaking program, which paid doctors to promote the company's products. As a result of these actions, Purdue Pharma will make a direct payment to the government of $225 million, which is part of a larger $2 billion criminal forfeiture. The company also faces a $3.54 billion criminal fine, though it is unlikely that this money will be fully collected due to the company's bankruptcy.
The Justice Department announced that the deal does not release any of the company's executives or owners, including members of the wealthy Sackler family, from criminal liability. A criminal investigation is ongoing, and the agreement will be detailed in a bankruptcy court filing in federal court. Purdue Pharma actively thwarted the United States' efforts to ensure compliance and prevent diversion, according to Tim McDermott, assistant administrator with the Drug Enforcement Administration (DEA). The devastating ripple effect of Purdue's actions left lives lost and others addicted.
Purdue Chairman Steve Miller, who joined the company's board in July 2018, said, "Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice. Purdue today is a very different company. We have made significant changes to our leadership, operations, governance, and oversight." The company filed for bankruptcy in 2019 and has made efforts to reform its practices and prevent future misconduct.
The abuse of prescription painkillers, such as OxyContin, has been a major contributor to the nation's opioid crisis. According to the Centers for Disease Control, 450,000 people died in the United States in the 10 years starting in 1999 from overdoses involving any opioid, including prescription and illicit opioids. Purdue Pharma's actions in conspiring to defraud the United States and violate federal anti-kickback laws have had devastating consequences for individuals, families, and communities across the country.
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Violating federal anti-kickback laws
Purdue Pharma, the company behind the powerful prescription painkiller OxyContin, has admitted to violating federal anti-kickback laws. The company has been accused of paying doctors, through a speaking program, to induce them to write more prescriptions for the company's opioids. Purdue also used electronic health records software to influence the prescription of pain medication. This resulted in a $225 million direct payment to the government, which is part of a larger $2 billion criminal forfeiture. In addition, Purdue faces a $3.54 billion criminal fine, though it is unlikely that this money will be fully collected due to the company's bankruptcy proceedings.
The Justice Department announced that Purdue Pharma would plead guilty to federal criminal charges as part of a settlement of more than $8 billion. The deal does not release any of the company's executives or owners, including members of the wealthy Sackler family, from criminal liability. A criminal investigation is ongoing.
Purdue Pharma actively thwarted the United States' efforts to ensure compliance and prevent diversion, according to Tim McDermott, assistant administrator with the Drug Enforcement Administration (DEA). The company's actions have had devastating consequences, leaving lives lost and others addicted to opioids.
Purdue Chairman Steve Miller, who joined the company's board in July 2018, expressed regret and accepted responsibility for the misconduct detailed by the Department of Justice. He stated that Purdue has made significant changes to its leadership, operations, governance, and oversight since then.
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Using a speakers program to pay doctors
Purdue Pharma, the company behind the powerful prescription painkiller OxyContin, has admitted to violating federal anti-kickback laws by using a speakers program to pay doctors to write more prescriptions for the company's opioids. This was part of a larger scheme to induce the prescription of pain medication, which also involved the use of electronic health records software.
The company will plead guilty to three criminal charges, including conspiracy to defraud the United States and violating federal anti-kickback laws. Purdue will make a direct payment to the government of $225 million as part of a larger $2 billion criminal forfeiture. In addition, the company faces a $3.54 billion criminal fine, though it is unlikely that this money will be fully collected due to the company's bankruptcy proceedings, which include a large number of other creditors.
The use of a speakers program to pay doctors was a key part of Purdue's strategy to increase the prescription of its opioids. By paying doctors to speak at events and promote their products, the company was able to influence medical professionals and drive up sales. This practice was in direct violation of federal anti-kickback laws, which prohibit the use of incentives to induce the prescription of medications.
The impact of Purdue's actions has been devastating, with the company's own chairman, Steve Miller, acknowledging the "misconduct" and "deeply regretting" the company's role in the opioid crisis. According to the Centers for Disease Control, 450,000 people died in the United States in the 10 years starting in 1999 from overdoses involving opioids, including prescription drugs.
The criminal investigation into Purdue Pharma is ongoing, and while the deal does not release any of the company's executives or owners from criminal liability, it remains to be seen if any individuals will be held accountable for their role in the opioid epidemic.
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Using electronic health records software to influence prescriptions
Purdue Pharma, the company behind the powerful prescription painkiller OxyContin, has admitted to violating federal anti-kickback laws by paying doctors to write more prescriptions for the company's opioids. The company also used electronic health records software to influence the prescription of pain medication.
In a statement, Tim McDermott, assistant administrator with the Drug Enforcement Administration (DEA), said:
> Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion. The devastating ripple effect of Purdue’s actions left lives lost and others addicted.
Purdue Pharma will plead guilty to three criminal charges, including conspiracy to defraud the United States and violating federal anti-kickback laws. The company 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.
Purdue Chairman Steve Miller, who joined the company's board in July 2018, said:
> Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice. Purdue today is a very different company. We have made significant changes to our leadership, operations, governance, and oversight.
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.
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Criminal charges related to the opioid crisis
Purdue Pharma, the company behind the powerful prescription painkiller OxyContin, will plead guilty to federal criminal charges as part of a settlement of more than $8 billion. The company will plead guilty to three counts, including conspiracy to defraud the United States and violating federal anti-kickback laws. Purdue admitted to using a speakers program to violate federal anti-kickback laws by paying doctors 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. 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 numbers of other creditors, including thousands of state and local governments.
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Frequently asked questions
Purdue broke federal anti-kickback laws by paying doctors to write more prescriptions for their opioids.
Purdue paid doctors through a speaking program and by using electronic health records software to influence the prescription of pain medication.
Purdue also conspired to defraud the United States.
Purdue pleaded guilty to three criminal charges and agreed to a settlement of more than $8 billion. The company will make a direct payment to the government of $225 million, which is part of a larger $2 billion criminal forfeiture. Purdue also faces a $3.54 billion criminal fine.
