Purdue Pharma, the maker of the highly addictive painkiller OxyContin, pleaded guilty on Tuesday to three criminal charges, AP reports.
Why it matters: The plea signals the company's admission it played a role in the opioid epidemic that has contributed to nearly half a million deaths over the past two decades.
In a virtual hearing on Tuesday, the Stamford, Connecticut company admitted:
- It impeded the U.S. Drug Enforcement Administration’s efforts to combat the addiction crisis.
- It had not maintained an effective program in preventing any black market sales. Purdue also gave misleading information to the DEA in order to boost manufacturing quotas.
- It also admitted paying doctors through a speakers program as an incentive to prescribe painkillers.
The big picture: The plea is one part of a slew of legal and financial troubles for the opioid manufacturer.
- Purdue earlier agreed to pay $225 million out of the $8.3 billion in penalties and forfeitures owed to the federal government.
- Members of the wealthy Sackler family who own the company have also agreed to pay $225 million to the federal government to settle civil claims.
Yes, but: Advocates and several attorneys general say the plea does little for the lives lost and the ongoing opioid crisis, which has worsened throughout the coronavirus pandemic, early data shows.