Wednesday, October 21, 2020

Purdue Pharma Cops a Plea

After killing thousands of Americans (an estimated 470,000) and addicting hundreds of thosands more, the pharmacuetical company that enriched the Sackler family will plead guilty to three federal felonies in deal with the US Justice Department. The company will pay $8 billion in damages, and Perdue Pharma will be dissolved. A successor company will be created as a public trust over which the Sacklers will have no control. The plea deal does not include any company executives or owners. Democratic state attorney generals, who have sued to recover some of the millions their states have spent on addiction treatment, say the deal falls short of justice because none of the Sacklers have been charged with a crime, and it is unlikely that Purdue will will ever fully pay its fines and penalties. 

AP reports Purdue will make a direct payment to the government of $225 million, which is part of a larger $2 billion criminal forfeiture. In addition to that forfeiture, Purdue also faces a $3.54 billion criminal fine, though that money probably will not be fully collected because it will be taken through a bankruptcy, which includes a large number of other creditors, including thousands of state and local governments. Purdue will also agree to $2.8 billion in damages to resolve its civil liability. In the agreed upon facts in the case, Purdue admits it impeded the Federal Drug Enforcement Administration by providing false information, violating federal anti-kickback laws by giving incentives to doctors, and using electronic medical records to influence prescription of pain medication. The deal does not hold any Sackler family members accountable for their company's criminal activity.

Some of the money recovered from Purdue will be used to treat patients addicted to the opiod drugs it manufactured.  Superseded in public attention by the pandemic, the opiod crisis in the US is getting worse after a one year drop in opiod deaths in 2018. The number of deaths attributed to opiod addiction is increasing, topping 50,000 in 2019. Ohio, an election battleground, is headed for its worst year of opiod fatalities. More residents died of overdoses in May than in any month in at least 14 years, according to preliminary statistics from the state health department. 

One of the presidential debate topics on Thursday is "American Families". Joe Biden's son has struggled with drug addiction.  Trumpillini had an older brother who died from alcohol addiction. Families are grieving in Ohio as a result of the opiod crisis. So the topic of the Purdue case settlement is clearly relevant. US Person suggests a question: should responsible Sackler family members face criminal prosecution?  Rude, but inquiring minds want to know.