Action settles civil charges arising from company’s misbranding of OxyContin

NAMFCU announced on September 10 that it has reached a settlement with The Purdue Frederick Company, Inc., a New York corporation, and Purdue Pharma, L.P., a Delaware limited partnership, (collectively “Purdue”), which are associated entities engaged in the manufacture, marketing, and distribution of OxyContin, an extended-release form of oxycodone.

As a result of a four-year investigation by the United States Attorney’s Office for the Western District of Virginia, in conjunction with other state and federal law enforcement agencies, The Purdue Frederick Company plead guilty to charges of knowingly and fraudulently misbranding OxyContin as detailed. The three executives of the company plead guilty in the same federal criminal proceedings to misdemeanor misbranding violations, which were strict liability offenses. Purdue also entered into civil agreements with the federal government and states, in which Purdue agreed that out of the $634.5 million settlement, it would pay $160 million to the federal government and state Medicaid programs to compensate the Medicaid programs for damages caused by the misbranding of OxyContin from 1995 through 2005.

The civil settlements with Purdue will further require the company to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services in order to monitor the company’s operations and ensure future compliance with all laws and regulations.