Purdue Pharma convicted for its role in opioid crisis, will dissolve

A federal judge in New Jersey ruled Tuesday against Purdue Pharma, the lab blamed as one of the main culprits of the opioid crisis in the country, and cleared the way for its dissolution in bankruptcy proceedings.

The laboratory and the Sackler family, its owners, were accused of promoting the painkiller OxyContin while concealing its high risk of addiction and of paying bribes to doctors, which generated billions of dollars in profits.

A ruling that marks the end of Purdue Pharma

Judge Madeline Cox Arleo validated the agreement that forces the company to pay more than $8 billion in compensation. Purdue Pharma will cease to exist as of May 1, when its assets will pass to a new entity called Knoa Pharma, whose mission will be to address the opioid crisis.

During a hearing lasting more than six hours, the judge heard testimony from dozens of victims and family members. At the end, she urged Purdue Pharma president Steve Miller to apologize. Subsequently, the judge apologized on behalf of the government, which, she said, "failed" to protect the public against practices "driven by greed" of the pharmaceutical company.

The judge further noted that Purdue Pharma's strategy was "much like a criminal enterprise."

Although several victims present asked to reject the settlement and requested criminal action against the Sacklers or higher damages, the judge found that this plan represents the best possible avenue available. In closing, she urged the bankruptcy attorneys to comply with the compensation.

Federal crimes amid deadly epidemic

In November 2020, Purdue pleaded guilty to three felonies: one for conspiracy with a dual purpose to defraud United States and violate the Food, Drug and Cosmetic Act, and two for conspiracy to violate the federal Anti-Kickback Statute.

The FBI's Washington, D.C., and Newark divisions investigated the case, with support from investigators from the HHS-OIG and the DEA.

According to data from the Centers for Disease Control and Prevention (CDC), nearly 727,000 people died from opioid-related overdoses in the United States between 1999 and 2022.