OxyContin maker Purdue Pharma set to dissolve after judge approves its criminal sentence
The deal includes more than $8 billion in fines and forfeitures, while the Sackler family would pay up to $7 billion over 15 years.
- On Tuesday, U.S. District Judge Madeline Cox Arleo sentenced Purdue Pharma to pay more than $5.5 billion in criminal penalties, resolving a Department of Justice investigation and clearing the path for the company's dissolution.
- Purdue's 2020 guilty plea serves as backdrop; the company admitted to misbranding OxyContin, paying kickbacks to doctors, and failing to prevent powerful painkillers from reaching the black market.
- During the hearing, Arleo heard testimony from victims and required Purdue Chairman Steve Miller to apologize directly; Sackler family members must contribute up to $7 billion over 15 years.
- Purdue will dissolve by Friday, transitioning into Knoa Pharma, a new nonprofit that will use company assets to develop opioid addiction treatments and overdose-reversal medications.
- While Arleo called the settlement the 'best route' available, critics argue the deal imposes no individual criminal punishment, allowing corporate wrongdoers to view fines as merely the 'cost of doing business.
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Purdue Pharma was accused of concealing the addictive potential of a painkiller and paying bribes to doctors. Overdoses resulted in nearly 730,000 deaths between 1999 and 2022.
OxyContin Maker Purdue Pharma Set to Dissolve After Judge OKs Its Criminal Sentence
(MedPage Today) -- Oxycodone hydrochloride (OxyContin) maker Purdue Pharma is set to be dissolved and replaced by a company focused on the public good by the week's end, as a massive legal settlement resolving thousands of lawsuits takes effect...
A federal judge in New Jersey handed down a sentence this Tuesday against Purdue Pharma, the laboratory designated as one of the main responsible for the opioid crisis in the country, and cleared the way for its definitive dissolution within the bankruptcy process.The laboratory and the Sackler family, its owners, were accused of promoting the analgesic OxyContin by hiding their high risk of addiction and paying bribes to doctors, practices that…
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