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Justice Department Seeks as Much as $18.1 Billion From Purdue Pharma

Submitted by jhartgen@abi.org on

The Justice Department is seeking as much as $18.1 billion from bankrupt opioid maker Purdue Pharma LP, new filings show, a demand that could disrupt the company’s monthslong effort to reach a settlement with states and local communities that accuse it of helping fuel the opioid crisis, the Wall Street Journal reported. The filings, made by the Justice Department in connection with Purdue’s bankruptcy case, also telegraph for the first time the nature and scope of yearslong criminal and civil investigations into the OxyContin maker. Federal prosecutors are investigating whether Purdue’s marketing and distribution of opioids violated criminal statutes including anti-kickback laws, misbranding under the Food, Drug and Cosmetic Act and conspiracy, according to the filings. On the civil side, they are looking at whether Purdue offered kickbacks to doctors and pharmacies to encourage them to prescribe and dispense more OxyContin, and whether the company transferred cash to hide money from creditors, the new filings show. In the filings, the Justice Department valued its civil claims at $2.8 billion, which could be tripled under the law. In the event of criminal charges and a conviction, the government said it would seek a $6.2 billion fine and the forfeiture of potentially $3.5 billion more. Purdue filed for chapter 11 bankruptcy protection in September to try to implement a multibillion-dollar settlement plan with states and local governments that had sued the company, claiming that its aggressive marketing of the powerful painkiller OxyContin led to widespread opioid addiction. The company has denied the allegations and said it is committed to helping alleviate opioid addiction.