How The Maker of OxyContin Could Avoid More Than 1,000 Lawsuits

The manufacturer of OxyContin, the very popular and highly addictive opioid painkiller drug, Purdue Pharma LLP, currently faces multiple lawsuits that could add up to tens of billions of dollars in settlements and judgments against it. Several states and thousands of individuals are accusing the OxyContin manufacturer of deceptive marketing practices leading to an explosion of drug addiction and death. Read on to see how this pharma giant is maneuvering so that it can avoid paying out a single penny to victims...

Not only is Purdue Pharma looking at lawsuits that could cost them billions, but executives and owners of the OxyContin manufacturer could also be facing felony charges for misrepresenting the drug’s deadly addictiveness and pushing reps to increase sales despite previous reprimands. And now,  in the wake of all these lawsuits, Purdue Pharma might file for bankruptcy, even though the company has no significant financial debt.

Purdue Pharma has fallen under fire for allegedly creating an epidemic of opioid addiction, then profiting further by selling the life-saving antidote. 

Can they get away with this?

Mounting Lawsuits

Purdue Pharma isn’t new to the courtroom. In 2007, company executives pleaded guilty to felony charges of misbranding OxyContin “with the intent to defraud or mislead” consumers. They don’t appear to have changed their ways, and now they’re facing additional charges. The first of multiple-state lawsuits is set to begin in Oklahoma on May 28, 2019.

Massachusetts has also filed a lawsuit, where several members of the Sackler family, which owns Purdue, will face felony charges. The state of Ohio also recently filed, consolidating over 1,600 cases against the company. In total, Purdue could face losing tens of billions of dollars in settlements and judgments. If the company files for bankruptcy, several cases could go on hold and it could be harder for individuals and states to seek damages.

The Deeper Issues

Purdue has a history of putting profits over people, lying about how addictive its opioid medications are and pushing increases in sales despite previous reprimands. NPR reported on a 2011 memo detailing demands on reps to increase their sales, in some cases by as much as 62%. In 2012, Purdue’s Vice President of Sales threatened to fire reps who weren’t convincing their clients to write enough prescriptions.

Last year, the company patented a “new” life-saving opioid antidote. This drug turned out to be an incarnation of buprenorphine, which Purdue has revised (and, in the process, re-patented) multiple times since 2010. A new patent immediately secures exclusive sales of that product for 5 years --- and they can charge 90% more for a drug during that time. This means Purdue can continue for years to come to earn maximum profits on overdoses caused by the epidemic it helped to start. This is the equivalent of starting house fires and then greatly overcharging homeowners for fire extinguishers to put out the fire you just started. If you cause the problem should you be able to profit from its solution? 

Purdue recently announced the development of yet another antidote, an injection that the company claims will be more effective than current forms of treatment. Company representatives claim their motivations are pure, telling MarketWatch that the company developed the new drug to save lives, not pad anyone’s bank accounts. We’ll see what the price tag looks like when the drug is released. At this point there are not many people that trust Purdue Pharma's intentions.

Purdue Pharma LLP could soon find itself stuck between a rock and a hard place. Years of deception are finally catching up with the company and the repercussions could be huge. Bankruptcy could save the company billions of dollars, but the individual felony charges aren’t as likely to disappear so easily.

~ Here’s to Your Health and Wellness