Purdue Pharma Chairman Steve Miller pleaded guilty on behalf of the company during a sham federal court hearing before U.S. District Judge Madeline Cox Arleo.
They count one conspiracy with two objects to defraud the United States and violate the Food, Drug, and Cosmetics Act, and two conspiracy counts for violating the federal statute against retaliation.
The plea agreement, announced in October, includes the largest sentence ever imposed on a pharmaceutical manufacturer, including a $ 3.544 billion fine and an additional $ 2 billion for confiscation, the Justice Department said.
The company, which filed for bankruptcy last year, will be dissolved as part of a plea agreement, and its funds will be used to create a new “public benefit company” controlled by a custodian or similar entity designed for the benefit of the U.S. public.
The Department of Justice has announced that Purdue Pharma will operate entirely in the public interest, not to increase profits. Its future revenue will be used to pay fines and penalties, which will then be used to combat the opioid crisis.
In pleading guilty to the charge, the company is taking responsibility for past violations, Purdue Pharma told CNN on Tuesday.
“Accepting our plea in federal court and taking responsibility for past violations is a key step in maintaining billions of dollars in value for creditors and advancing our goal of providing funding and rescue drugs to address the opioid crisis,” the statement said. .
“We continue to work tirelessly to build additional support for the proposed bankruptcy settlement, which would channel the vast majority of the settlement funds to the state, local and tribal governments to address the opioid crisis.”
The Sackler family and other current and former employees and business owners still face the possibility of filing federal criminal charges against them.
The court did not set a date for the sentencing hearing.