Purdue Pharma, Opioid Fraud and Kickbacks, New Jersey 2023

Newark, N.J. - Purdue Pharma LP, a leading opioid manufacturer, has pleaded guilty to conspiring to defraud the United States, violate the Food, Drug, and Cosmetic Act, and violate the Federal Anti-Kickback Statute.

Purdue Pharma pleaded guilty to one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.

"Purdue admitted that it marketed and sold its dangerous opioid products to healthcare providers, even though it had reason to believe those providers were diverting them to abusers," said Attorney for the United States Rachael A. Honig, District of New Jersey. "The company lied to the Drug Enforcement Administration about steps it had taken to prevent such diversion, fraudulently increasing the amount of its products it was permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of its products."

The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids, said Deputy Attorney General Jeffrey A. Rosen. "Today's guilty pleas to three felony charges send a strong message to the pharmaceutical industry that illegal behavior will have serious consequences."

As part of today's guilty plea, Purdue Pharma admitted that from May 2007 through at least March 2017, it conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA). Purdue represented to the DEA that it maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids.

Purdue Pharma has agreed to pay a record $3.5 billion in fines and restitution. The company's guilty plea sends a strong message to the pharmaceutical industry that illegal behavior will have serious consequences. The opioid epidemic continues to spread across the United States, impacting countless Americans and harming communities. Together with our law enforcement partners, the FBI is committed to investigating and holding criminals accountable for the roles they play in fueling this crisis.

The defendant, Purdue Pharma LP, is a leading opioid manufacturer with a history of engaging in illicit activities. The company's guilty plea to three felony charges is a significant blow to its reputation and its bottom line. The $3.5 billion in fines and restitution is a record amount for a pharmaceutical company in the United States.

The case against Purdue Pharma began in 2007 and involved a multi-agency investigation led by the FBI's Criminal Investigative Division. The investigation found that Purdue Pharma had engaged in a wide-ranging conspiracy to defraud the United States, violate the Food, Drug, and Cosmetic Act, and violate the Federal Anti-Kickback Statute.

Purdue Pharma is a privately held company based in Stamford, Connecticut. The company was founded in 1993 and was previously owned by the Sackler family. The company's guilty plea is a significant development in the ongoing effort to hold pharmaceutical companies accountable for their role in the opioid epidemic.

Source: https://www.justice.gov/usao-nj/pr/opioid-manufacturer-purdue-pharma-admits-guilt-fraud-and-kickback-conspiracies