Staff Reports
A judge has mandated that pharmaceutical company Endo Health Solutions Inc. pay over $1.5 billion in criminal penalties for misleading doctors about the safety of its opioid medication, Opana ER with INTAC. Endo Health Solutions Inc. pleaded guilty to the charges, acknowledging that its sales managers and representatives had disseminated false information about the drug. The U.S. Department of Justice asserts that these deceptive practices played a part in exacerbating the nationwide opioid crisis.
Endo Health Solutions Inc., which had previously filed for bankruptcy, will cease its operations in its current form and will not emerge from bankruptcy. As part of the approved bankruptcy plan, the newly formed entity has set up trusts to settle claims related to opioids. Public trusts will distribute over $450 million to state, municipal, and Tribal entities to aid in combating the opioid crisis. The Justice Department will credit up to $450 million of these payments against the agreed forfeiture amount. The Endo Health Solutions Inc. affiliates that have emerged from bankruptcy are also subject to an injunction that prohibits future opioid sales and marketing and mandates the disclosure of millions of documents pertaining to their role in the opioid crisis.
— Beth Smith Kenny (@BethSmithKenny) May 4, 2024
This ruling marks the second-largest imposition of criminal financial penalties against a pharmaceutical company for violations of the Federal Food, Drug, and Cosmetic Act. DEA Administrator Anne Milgram has condemned Endo Health Solutions Inc.'s deliberate misrepresentation of opioid medications, accusing the company of prioritizing profits over the health and well-being of the American populace. The case underscores the issue of companies like Endo Health Solutions Inc. building their businesses on false claims and deceptive practices, which have fueled the ongoing opioid crisis in the nation.
In essence, the judge's decision underscores the gravity of the consequences for pharmaceutical companies engaging in deceptive practices and prioritizing profits over public health. It represents a crucial step towards holding such companies accountable for their role in perpetuating the opioid crisis and seeking justice for the individuals affected by their harmful actions.
