Penalties imposed against Purdue Pharma
Purdue Pharma’s settlement with the DOJ does not resolve the claims that states filed against the company and/or the Sackler family. It also does not hinder the debtors’ ability to recover any fraudulent transfers of assets.
Under the terms of the plea agreement, Purdue Pharma agreed to the imposition of a criminal penalty of $3.544 billion and an additional $2 billion in criminal forfeiture. The criminal penalty is the largest ever imposed against a pharmaceutical company.
For the $2 billion forfeiture, it will pay $225 million within three business days following the entry of a judgment of conviction. If certain conditions are met, the DOJ will credit the value conferred by the company to state and local governments under the department’s anti-pilling on and coordination policy.
Purdue also agreed to a civil settlement providing the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
