May 11th, 2007

"Oxycontin Penalty Deal"

The company that makes the pain relief drug OxyContin, Purdue Pharma LP, agreed Thursday to pay $600 million as a penalty for misleading and defrauding consumers and physicians about the addictive properties of its product. Another $34.5 million in penalties will be paid by the CEO of Purdue, Michael Friedman; the company’s general counsel, Howard Udell; and its former chief medical officer, Dr. Paul Goldenheim. They pleaded guilty in federal court to criminal charges.

False Claims about OxyContin’s Benefits
The U.S. Department of Justice had charged Purdue Pharma, a privately owned company, with making false claims that the drug is less addictive, less subject to abuse, and less likely to produce withdrawal symptoms compared to similar pain medications. OxyContin was FDA-approved in 1995 as a long-acting and powerful narcotic that can relieve severe pain for up to 12 hours.

In the period between OxyContin’s introduction to the public and 2001, the drug produced $2.8 billion in revenue for Connecticut-based Purdue, accounting for 90 percent of the company’s sales. The company heavily promoted the drug’s use to doctors, contending that OxyContin poses a lower risk of addiction and abuse compared to faster-acting painkillers such as Vicodin and Percocet.

Soaring Rates of OxyContin Addiction and Related Crime
By 2000, many parts of the U.S. were witness to skyrocketing rates of OxyContin addiction and overdoses, plus crime related to OxyContin abuse. Lawsuits by consumers who became addicted to OxyContin after being treated with this prescription medication proliferated.

"With its OxyContin, Purdue unleashed a highly abusable, addictive and potentially dangerous drug on an unsuspecting and unknowing public. For these misrepresentations and crimes, Purdue and its executives have been brought to justice," stated U.S. Attorney John Brownlee.

Purdue also entered an agreement to participate in an independent monitoring program and to remedial action regarding OxyContin. The company acknowledged making “misstatements” using a deceptive marketing campaign to convince doctors that OxyContin was less prone to addiction and abuse than competing pain medications.

(Source: International Herald Tribune)

Injured by OxyContin? Contact an experienced attorney near you today to learn more about holding the drug’s maker responsible for your losses and injuries.