Prosecutors Scrutinize 6 Drug Companies over Alleged Role in Opioid Crisis

Los Angeles, California -

Federal prosecutors have opened a criminal investigation into whether several large drug companies intentionally ignored regulations in order to promote the sale of opioids. Prosecutors have asked companies like Johnson & Johnson and McKesson Corporation to hand over documents related to the marketing and sale of these opioid products.

The investigation was sparked by the opioid epidemic, which has killed over 700,000 people in the US from 1999 to 2017. Around 130 people die every day because of an opioid-related overdose. Lawsuits have been filed against drug companies that allegedly misrepresented their opioid products and failed to highlight the addictive qualities of the drugs.

These drug companies have faced criminal probes and multibillion-dollar lawsuits for their alleged role in spreading the opioid epidemic.

This year, federal prosecutors in Manhattan and Cincinnati have brought novel cases against companies that distributed opioids to pharmacies, with criminal conspiracy charges.

At least six companies disclosed in recent regulatory filings that they received grand jury subpoenas from federal prosecutors in Brooklyn. This includes Johnson & Johnson, Teva Pharmaceutical Industries Ltd., Mallinckrodt PLC, Amneal Pharmaceuticals Inc., AmerisourceBergen Corporation and McKesson Corporation.

The criminal investigation was first reported by The Wall Street Journal. According to the filings, the subpoenas were sent out as recently as August. The filings also revealed that prosecutors from the Eastern District of New York asked the companies to hand over documents related to the marketing and sale of opioids. The subpoenas sought information about the companies’ internal programs and policies to stop the abuse of opioid medications.

The goal is to examine whether the companies violated the federal Controlled Substances Act. It is a broad statute that regulates drug distribution and possession. It has been used to impose penalties against pharmacies that failed to adequately control prescription painkillers from reaching the black market.

Before they could 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 spokesperson for Johnson & Johnson said that the company’s procedures for distributing opioid medications complied with the law. They added that monitoring data showed the company’s opioids were rarely abused.

Meanwhile, a spokeswoman for Teva Pharmaceuticals said the company was cooperating with the subpoena and was confident in its monitoring policies.

A spokesman for Mallinckrodt declined to comment. AmerisourceBergen, McKesson, and Amneal have not responded so far.

Last year, the Justice Department created a task force to pursue makers and distributors of prescription painkillers.

“We will use criminal penalties,” said Jeff Sessions, who was the United States attorney general at the time. “We will use civil penalties. We will use whatever tools we have to hold people accountable for breaking our laws.”

Deaths from opioid overdoses have surged in the past few years. This is why law enforcement officials have sought to use criminal prosecution against corporate executives accused of contributing to the opioid crisis.

Earlier, federal prosecutors in Manhattan brought felony drug-trafficking charges against major pharmaceutical distributor Rochester Drug Cooperative, or RDC, and two of its former executives. Prosecutors said the former executives 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.

The company has admitted in court papers that it intentionally violated federal narcotics laws by shipping opioids to pharmacies, despite knowing the prescription medications were being sold and used illicitly. RDC has 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.

If someone in the family is struggling with drug or alcohol addiction, it is important to seek help. A combination of medical detox and behavioral therapy can go a long way in the fight against drug abuse. But because every individual is affected by addiction differently, a comprehensive program tailored to their specific needs is necessary. Look for a nearby addiction treatment facility today and find out how drug treatment programs work.