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Friday, March 29, 2024

U.S. secures $35 million settlement with pharmaceutical manufacturer over oxycodone allegations

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WASHINGTON (Legal Newsline) — The U.S. Department of Justice announced July 11 that Mallinckrodt LLC, a pharmaceutical company that manufactures generic oxycodone, will pay $35 million after allegations of violating the Controlled Substances Act (CSA).

“Manufacturers and distributors have a crucial responsibility to ensure that controlled substances do not get into the wrong hands,” Drug Enforcement Agency (DEA) acting administrator Chuck Rosenberg said. “When they violate their legal obligations, we will hold them accountable.”

According to government allegations, Mallinckrodt did not have a proper system in place to detect “suspicious orders” for controlled substances. From 2008 to 2011, Mallinckrodt purportedly supplied distributors who supplied pharmacies a growing amount of oxycodone pills without notifying the DEA.


“In the midst of one of the worst drug abuse crises in American history, the Department of Justice has the responsibility to ensure that our drug laws are being enforced and to protect the American people,” U.S. Attorney General Jeff Sessions said. 

“Part of that mission is holding drug manufacturers accountable for their actions. Mallinckrodt’s actions and omissions formed a link in the chain of supply that resulted in millions of oxycodone pills being sold on the street. Thanks to the hard work of our attorneys and law enforcement, Mallinckrodt has agreed to do everything they can to help us identify suspicious orders in the future.”

 

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