⁍ U.S. prosecutors are pursuing possible penalties of nearly $13 billion to resolve investigations of OxyContin maker Purdue Pharma.
⁍ Justice Department officials outlined additional details of their ongoing investigations of the company, controlled by the wealthy Sackler family.
⁍ Initial claims seek about $10 billion in criminal penalties, consisting of a fine exceeding $6 billion and a forfeiture of more than $3 billion.
– The Justice Department may be about to go after the Sacklers—the family that controls Purdue Pharma, the maker of OxyContin. Per Reuters, the department has filed claims with Purdue’s bankruptcy court seeking more than $13 billion in penalties related to the company’s alleged role in fueling the opioid crisis. The claims include criminal and civil penalties of more than $6 billion and a forfeiture of more than $3 billion, per one of the people familiar with the matter. The size of the claims represent the upper limit of penalties federal prosecutors might seek, and the ultimate sums paid to resolve the investigations are likely to be far lower. Purdue has offered to settle widespread opioid litigation in a deal it values at more than $10 billion. That includes $3 billion from the Sacklers and value derived from the Stamford, Conn.-based firm transforming into a public benefit company run on behalf of plaintiffs that would donate addiction treatment drugs and opioid overdose-reversal medications under development. Purdue filed for bankruptcy protection nearly a year ago and received court approval to halt more than 2,600 lawsuits brought by cities, counties, states, hospitals, and other plaintiffs alleging the company and the Sacklers were major contributors to the US opioid epidemic. As part of the criminal probe, Justice Department officials are scrutinizing Purdue’s alleged encouragement of illegal opioid prescriptions, some of the people said. US prosecutors are focused on possible conspiracy charges and alleged violations of anti-kickback and drug safety laws. A separate civil investigation is focused in part on the company’s alleged defrauding government healthcare programs such as Medicare.
Source: https://www.reuters.com/article/us-purdue-pharma-investigations-opioids/exclusive-us-pursues-nearly-13-billion-of-claims-in-purdue-pharma-opioid-probes-sources-say-idUSKCN251001