Purdue Sentencing Sets $5.3 Billion in Criminal Penalties
Purdue Pharma was sentenced 4/28 in federal court in Newark, NJ, to pay more than $5 billion in criminal penalties for its role in the U.S. opioid epidemic. The penalties include a $3.544 billion criminal fine and $2 billion in forfeiture, though up to $1.775 billion of the forfeiture may be credited depending on the outcome of the company’s ongoing bankruptcy proceedings, according to a Justice Department release.
According to court documents, Purdue illegally marketed its opioid products between 2007 and 2017, targeting prescribers the company had reason to believe were issuing prescriptions without legitimate medical purpose. Prosecutors said the company also misled the Drug Enforcement Administration about its efforts to prevent drug diversion and used those representations to seek higher manufacturing quotas.
The government further alleges that Purdue paid illegal kickbacks to healthcare providers through speaker programs and an electronic health records platform to encourage increased prescribing of its opioid medications.
In 2020, Purdue pleaded guilty to a three-count felony information charging it with one count of a dual-object conspiracy to defraud the U.S. and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.