Elite Pharmaceuticals Inc (ELTP)

[Aqua]

Oxycontin-related lawsuits

S o u r c e

Purdue was involved in measures against prescription drug abuse, particularly of Oxycontin. In 2001, Connecticut Attorney General Richard Blumenthal issued a statement urging Purdue to take action regarding abuse of Oxycontin; he did note that, while Purdue seemed sincere, there was little action being taken beyond "cosmetic and symbolic steps."[7] After Purdue announced plans to reformulate the drug, Blumenthal noted that this would take time, and that "Purdue Pharma has a moral, if not legal, obligation to take effective steps now that address addiction and abuse even as it works to reformulate the drug."[8] The company has since implemented a comprehensive program designed to assist in detection of the illegal trafficking and abuse of prescription drugs without compromising patient access to proper pain control.[citation needed]

In May 2007 the company pleaded guilty to misleading the public about Oxycontin's risk of addiction, and agreed to pay $600 million in one of the largest pharmaceutical settlements in U.S. history. Its president, top lawyer, and former chief medical officer pleaded guilty as individuals to misbranding charges, a criminal violation, and agreed to pay a total of $34.5 million in fines.[9][10] Those executives are: Michael Friedman, the company’s president, who agreed to pay $19 million in fines; Howard R. Udell, its top lawyer, who agreed to pay $8 million; and Dr. Paul D. Goldenheim, its former medical director, who agreed to pay $7.5 million.

In addition three top executives were charged with a felony and sentenced to 400 hours of community service in drug treatment programs.[11]

On October 4, 2007 Kentucky officials sued Purdue because of widespread Oxycontin abuse in Appalachia. A lawsuit filed by Kentucky then-Attorney General Greg Stumbo and Pike County officials demanded millions in compensation.[12]

Kentucky is filing a total of 12 claims against the company, including false advertising, Medicaid fraud, unjust enrichment, and punitive damages. In total the suit could cost Purdue Pharma $1 billion (which is just one-third of its annual revenues from OxyContin).[13]

Cheers!