Opioid Crisis-Related Prosecutions
1. United States v. Purdue Pharma (2020)
Facts:
Purdue Pharma, maker of OxyContin, was accused of aggressively marketing opioids while downplaying their addictive potential, contributing significantly to the opioid epidemic.
Legal Issues:
False marketing and misbranding under the Food, Drug, and Cosmetic Act.
Conspiracy to defraud the government and the public.
Violations of the Controlled Substances Act.
Outcome:
Purdue Pharma pleaded guilty to three federal criminal charges and agreed to pay over $4.5 billion in fines and settlements. The company filed for bankruptcy, and a settlement fund was created for opioid victims.
Significance:
Landmark prosecution of a major pharmaceutical company.
Set precedent for holding manufacturers accountable for public health crises.
2. United States v. Insys Therapeutics (2019)
Facts:
Insys was charged with bribing doctors to prescribe Subsys, a fentanyl-based opioid, and misleading insurers to approve unnecessary prescriptions.
Legal Issues:
Racketeering (RICO) conspiracy.
Fraud and kickbacks violating anti-kickback statutes.
Conspiracy to commit healthcare fraud.
Outcome:
The company’s founder and several executives were convicted. Insys filed for bankruptcy, and the company agreed to multi-million-dollar settlements.
Significance:
Highlighted the role of aggressive sales practices and corruption in the opioid epidemic.
Demonstrated the application of RICO laws to pharmaceutical fraud.
3. United States v. McKesson Corporation (2019)
Facts:
McKesson, a major pharmaceutical distributor, was accused of failing to report suspicious opioid orders and enabling illegal diversion of opioids.
Legal Issues:
Violations of the Controlled Substances Act for failure to maintain effective controls.
Negligence in monitoring and reporting suspicious orders.
Outcome:
McKesson agreed to a $150 million settlement with the government and enhanced compliance measures.
Significance:
First major distributor settlement in opioid prosecutions.
Signaled increased responsibility for distributors in preventing opioid diversion.
4. United States v. Dr. Michael Swango (2018)
Facts:
Dr. Swango was prosecuted for illegally prescribing opioids without legitimate medical need and contributing to patient harm.
Legal Issues:
Illegal distribution of controlled substances.
Fraudulent medical practices and violations of state medical laws.
Outcome:
Swango was convicted and sentenced to prison, license revoked.
Significance:
Reinforced scrutiny on individual prescribers in the opioid crisis.
Demonstrated consequences for doctors overprescribing opioids.
5. State of Ohio v. Cardinal Health, AmerisourceBergen, and McKesson (2021)
Facts:
The three largest drug distributors were sued by Ohio for allegedly fueling the opioid crisis by flooding the state with excessive opioid shipments.
Legal Issues:
Public nuisance claims.
Violations of consumer protection laws.
Failure to monitor and report suspicious opioid orders.
Outcome:
The companies agreed to a $215 million settlement with Ohio and agreed to implement stricter monitoring.
Significance:
Major state-level settlement holding distributors accountable.
Part of broader multi-state litigation efforts against opioid suppliers.
6. United States v. Walgreens (2020)
Facts:
Walgreens was accused of failing to detect and report suspicious opioid prescriptions and shipments at numerous pharmacy locations.
Legal Issues:
Violations of the Controlled Substances Act.
Negligent distribution and failure to report suspicious orders.
Outcome:
Walgreens agreed to a $20 million settlement with the federal government and committed to improving controls.
Significance:
Highlighted the role of retail pharmacies in opioid oversight.
Showed federal willingness to prosecute or settle with pharmacy chains.
Summary Table
| Case | Defendant(s) | Charges | Outcome | Significance |
|---|---|---|---|---|
| US v. Purdue Pharma (2020) | Purdue Pharma | False marketing, conspiracy | Guilty plea, $4.5B settlement | Landmark manufacturer accountability |
| US v. Insys Therapeutics (2019) | Insys Therapeutics | RICO, fraud, kickbacks | Convictions, bankruptcy | Pharma fraud & corruption |
| US v. McKesson Corporation (2019) | McKesson | CSA violations | $150M settlement | Distributor accountability |
| US v. Dr. Michael Swango (2018) | Individual doctor | Illegal prescribing | Conviction, license revoked | Doctor liability in opioid crisis |
| State of Ohio v. Cardinal Health et al. (2021) | Three major distributors | Public nuisance, consumer protection | $215M settlement | State-level distributor accountability |
| US v. Walgreens (2020) | Walgreens | Negligent distribution | $20M settlement | Pharmacy chain responsibility |
Key Legal Takeaways:
Prosecutions target manufacturers, distributors, pharmacies, and individual prescribers.
Key statutes include the Controlled Substances Act, Anti-Kickback Statute, and laws against fraud and conspiracy.
Courts have held companies accountable for marketing practices, failure to monitor suspicious orders, and corruption.
Settlements often include fines, reforms, and creation of funds for opioid victims.
These cases have shifted the legal landscape regarding corporate accountability for public health crises.
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