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6 Drug Companies’ Role in Opioid Epidemic Scrutinized by Prosecutors 6 Drug Companies’ Role in Opioid Epidemic Scrutinized by Prosecutors
(about 1 hour later)
Federal prosecutors in Brooklyn have opened a criminal investigation into whether several large drug companies intentionally skirted regulations in order to promote the sale of addictive opioids, according to corporate filings and a person familiar with the matter.Federal prosecutors in Brooklyn have opened a criminal investigation into whether several large drug companies intentionally skirted regulations in order to promote the sale of addictive opioids, according to corporate filings and a person familiar with the matter.
The investigation is part of a heightened law enforcement scrutiny into companies that make and distribute prescription painkillers. The companies have faced criminal probes and multibillion-dollar lawsuits for their alleged role in the opioid epidemic. The investigation is part of a heightened law enforcement scrutiny around the country into companies that make and distribute prescription painkillers. Drug companies have faced criminal probes and multibillion-dollar lawsuits for their alleged role in the opioid epidemic.
This year, federal prosecutors in Manhattan and Cincinnati have brought novel cases against companies that distributed opioids to pharmacies, using criminal conspiracy charges typically deployed against drug dealers.This year, federal prosecutors in Manhattan and Cincinnati have brought novel cases against companies that distributed opioids to pharmacies, using criminal conspiracy charges typically deployed against drug dealers.
At least six companies disclosed in recent regulatory filings that they received grand jury subpoenas from federal prosecutors in Brooklyn: Johnson & Johnson, Teva Pharmaceutical Industries Ltd., Mallinckrodt PLC, Amneal Pharmaceuticals Inc., AmerisourceBergen Corporation and McKesson Corporation.At least six companies disclosed in recent regulatory filings that they received grand jury subpoenas from federal prosecutors in Brooklyn: Johnson & Johnson, Teva Pharmaceutical Industries Ltd., Mallinckrodt PLC, Amneal Pharmaceuticals Inc., AmerisourceBergen Corporation and McKesson Corporation.
The subpoenas, which were first reported by The Wall Street Journal, were sent out as recently as August, according to the filings. The subpoenas were sent out as recently as August, according to the filings. The criminal investigation was first reported by The Wall Street Journal.
Prosecutors from the Eastern District of New York asked the companies to hand over documents related to the marketing and sale of opioids, the filings said. The subpoenas also sought information about the companies’ internal programs and policies to stop the abuse of opioid medications.Prosecutors from the Eastern District of New York asked the companies to hand over documents related to the marketing and sale of opioids, the filings said. The subpoenas also sought information about the companies’ internal programs and policies to stop the abuse of opioid medications.
Prosecutors are examining whether the companies violated the federal Controlled Substances Act, a broad statute that regulates drug distribution and possession, according to corporate filings and a person familiar with the investigation. The law has been used to impose penalties against pharmacies that failed to adequately control prescription painkillers from reaching the black market.Prosecutors are examining whether the companies violated the federal Controlled Substances Act, a broad statute that regulates drug distribution and possession, according to corporate filings and a person familiar with the investigation. The law has been used to impose penalties against pharmacies that failed to adequately control prescription painkillers from reaching the black market.
To bring criminal charges under the statute, the government must prove that the companies or their executives intentionally avoided complying with regulations that require them to flag suspicious orders of opioid medications.To bring criminal charges under the statute, the government must prove that the companies or their executives intentionally avoided complying with regulations that require them to flag suspicious orders of opioid medications.
A spokesman for Johnson & Johnson said the company’s procedures for distributing opioid medications complied with the law, adding that monitoring data showed the company’s opioids were rarely abused.A spokesman for Johnson & Johnson said the company’s procedures for distributing opioid medications complied with the law, adding that monitoring data showed the company’s opioids were rarely abused.
A spokeswoman for Teva said the company was cooperating with the subpoena and was confident in its monitoring policies.A spokeswoman for Teva said the company was cooperating with the subpoena and was confident in its monitoring policies.
A spokesman for Mallinckrodt declined to comment. Officials at AmerisourceBergen, McKesson and Amneal did not respond to requests for comment.A spokesman for Mallinckrodt declined to comment. Officials at AmerisourceBergen, McKesson and Amneal did not respond to requests for comment.
As deaths from opioid overdoses have surged in the past few years, law enforcement officials across the country have sought to use criminal prosecution against corporate executives accused of contributing to the epidemic. Last year, the Justice Department created a task force to pursue makers and distributors of prescription opioids.As deaths from opioid overdoses have surged in the past few years, law enforcement officials across the country have sought to use criminal prosecution against corporate executives accused of contributing to the epidemic. Last year, the Justice Department created a task force to pursue makers and distributors of prescription opioids.
“We will use criminal penalties,” said the United States attorney general at the time, Jeff Sessions. “We will use civil penalties. We will use whatever tools we have to hold people accountable for breaking our laws.”“We will use criminal penalties,” said the United States attorney general at the time, Jeff Sessions. “We will use civil penalties. We will use whatever tools we have to hold people accountable for breaking our laws.”
Opioid cases have become such a priority for the government that the United States attorney for the Eastern District, Richard P. Donoghue, has asked every prosecutor in the criminal division to take on an opioid-related case, according to people familiar with the office. Opioid cases have become such a priority for the government that the United States attorney for the Eastern District, Richard P. Donoghue, has asked every prosecutor in his criminal division to take on an opioid-related case, according to people familiar with the office.
Earlier this year, for the first time, federal prosecutors in Manhattan brought felony drug-trafficking charges against a major pharmaceutical distributor and two of its former executives. Prosecutors said the former executives at the company, Rochester Drug Cooperative, or RDC, ignored red flags and shipped tens of millions of oxycodone pills and fentanyl products to pharmacies they knew were distributing the drugs illegally.Earlier this year, for the first time, federal prosecutors in Manhattan brought felony drug-trafficking charges against a major pharmaceutical distributor and two of its former executives. Prosecutors said the former executives at the company, Rochester Drug Cooperative, or RDC, ignored red flags and shipped tens of millions of oxycodone pills and fentanyl products to pharmacies they knew were distributing the drugs illegally.
One of the former executives pleaded guilty to three criminal counts, including intentionally failing to report suspicious bulk orders of fentanyl and other opioids. He is cooperating with prosecutors. The other former executive has pleaded not guilty.
As part of the case, the company agreed to a deal in which it would avoid criminal charges as long as it pays a $20 million fine, complies with the controlled substances law and submits to five years of supervision by an independent monitor.As part of the case, the company agreed to a deal in which it would avoid criminal charges as long as it pays a $20 million fine, complies with the controlled substances law and submits to five years of supervision by an independent monitor.
The company admitted in court papers that it intentionally violated federal narcotics laws by shipping opioids to pharmacies, knowing that the prescription medicines were being sold and used illicitly.The company admitted in court papers that it intentionally violated federal narcotics laws by shipping opioids to pharmacies, knowing that the prescription medicines were being sold and used illicitly.
In a similar case in Cincinnati, federal prosecutors this year brought criminal charges against a pharmaceutical distributor, Miami-Luken Inc., saying the company ignored “obvious signs of abuse.” Among other allegations, the government said the company had distributed more than 2.3 million oxycodone pills to a pharmacy in a town of approximately 1,400 people.
The company, which closed, was charged alongside two of its former officials and two pharmacists. All have pleaded not guilty.
Lawsuits around the country have also accused big opioid makers and distributors of using misleading marketing and playing down how addictive the painkillers were in order to increase sales.Lawsuits around the country have also accused big opioid makers and distributors of using misleading marketing and playing down how addictive the painkillers were in order to increase sales.
Jan Hoffman contributed reporting.Jan Hoffman contributed reporting.