Purdue Pharma, the maker of OxyContin, pleaded guilty to criminal charges that the company helped drive the opioid crisis that has killed more than 450,000 people.
In a virtual hearing before U.S. District Judge Madeline Cox Arleo in New Jersey, the pharmaceutical company pleaded guilty to bribing healthcare providers to entice them to keep prescribing the opioid regardless of medical necessity. Purdue also admitted to failing to provide the Drug Enforcement Administration with accurate information about the risk of abuse that comes with its popular drug.
Tuesday’s guilty pleas are part of a settlement announced last month with the Justice Department for roughly $8.3 billion. It is also the first formal admission from Purdue regarding its role in the opioid crisis. The company must also provide direct payment of $225 million to the federal government.
Members of the Sackler family who own Purdue Pharma will not face criminal charges. However, Purdue’s owners must pay $225 million in civil penalties, part of a larger $2 billion criminal forfeiture.
State attorneys general have brought more than 2,000 lawsuits against the company, and they have expressed their frustration by what they consider to be lenient penalties that do not include prison time for members of the Sackler family.
