By: Richard L. Smith
Opioid manufacturer Purdue Pharma was sentenced in federal court in Newark and ordered to pay more than $5 billion in criminal penalties for its role in fueling the nation’s opioid epidemic, according to information released by federal authorities.
Court records show that between 2007 and 2017, Purdue unlawfully marketed its opioid products to hundreds of prescribers the company had reason to believe were issuing prescriptions without legitimate medical purpose.
Authorities said the company also defrauded the Drug Enforcement Administration by misrepresenting the effectiveness of programs intended to prevent the illegal diversion of opioids.
Investigators determined that Purdue used prescriptions from questionable prescribers to support fraudulent requests to increase the amount of opioids it was permitted to manufacture.
The company also paid kickbacks to healthcare providers through speaker programs and to an electronic health records platform to encourage increased prescribing of its opioid medications.
As part of the sentencing, Purdue was ordered to pay a criminal fine of $3.544 billion, which will be addressed through bankruptcy proceedings, along with an additional $2 billion in criminal forfeiture.
Federal officials said up to $1.775 billion of the forfeiture amount may be credited based on value provided to state, local, and tribal governments through Purdue’s bankruptcy—if the company ceases operations in its current form and reemerges as a public benefit company aimed at serving the American public.
Under that structure, proceeds would be directed toward opioid abatement programs nationwide. Purdue is also required to establish a public document repository related to the criminal case.
Purdue previously pleaded guilty on November 24, 2020, to a three-count felony information, including conspiracy to defraud the United States, violations of the Food, Drug, and Cosmetic Act, and conspiracy to violate the federal Anti-Kickback Statute.
The case remains one of the most significant criminal actions tied to the opioid crisis in the United States.