In 2007, former President and CEO Michael Friedman and Executives Paul Goldenheim and Howard Udell pleaded guilty to allowing their company to illegally market the painkiller drug while serving in leadership positions.
Although the DEA has classified Oxycontin as a Schedule II controlled substance due to its potential for abuse and dependence, a federal investigation discovered Purdue misbranded OxyContin by knowingly making statements that led patients to believe the drug would not result in any withdrawal symptoms. Additionally, Purdue trained its sale team members to make false statements to healthcare providers about how difficult it would be for drug abusers to extract oxycodone, the active ingredient in OxyContin, for intravenous use.
Federal prosecutor says the company’s intent to defraud led to revenues totaling approximately $2.8 billion for OxyContin alone. Following the investigation and guilty pleas, Purdue agreed to pay more than $700 million to settle the allegations.
Read the news report about Purdue Frederick’s fraud.
Read other coverage about pharmaceutical fraud:
– 20 Largest False Claims Cases of 2010
– Kos Pharmaceuticals Will Pay $41M to Settle Kickback, Off-Label Promotion Allegations
– Three Pharmaceutical Companies Will Pay Combined $421M to Settle Drug-Pricing Lawsuit
