Vermont’s Role Exposed in $5 Billion Purdue Pharma Opioid Fraud Fine

Purdue Pharma, the pharmaceutical giant behind OxyContin, was sentenced Tuesday in federal court to pay more than $5 billion in criminal penalties for its central role in the opioid epidemic devastating the United States. This historic case, partially uncovered by the U.S. Attorney’s Office in Vermont, marks a rare and significant victory in holding Big Pharma accountable for widespread public harm.

Acting Attorney General Todd Blanche did not mince words, stating, “Purdue Pharma put profits over patient health and safety.” He condemned the company’s willful rejection of the law and its blatant disregard for the diversion of addictive prescription opioids that fueled a crisis destroying countless families and communities.

FBI Director Kash Patel underscored the gravity of the case, calling the opioid epidemic a “plague” and emphasizing Purdue’s greed-driven complicity in endangering lives. Patel vowed that the FBI and Department of Justice will continue to ensure that corporations like Purdue pay for their crimes and serve as warnings to others.

The Vermont investigation, led by former Assistant U.S. Attorneys Owen Foster and Michael Drescher and healthcare fraud investigator George Thabault under U.S. Attorney Christina Nolan, uncovered a critical piece of Purdue’s illegal operations. From April to December 2016, Purdue funneled nearly $1 million to Practice Fusion, an electronic health records company, to install software prompts that nudged doctors to prescribe Purdue’s extended-release opioids, including OxyContin, Butrans, and Hysingla.

Robert S. Miller, Purdue’s Board Chairman, admitted in court that these prompts were designed to boost opioid sales and that Purdue knowingly conspired to violate the Federal Anti-Kickback Statute. This admission marked the first time a pharmaceutical company was found guilty of conspiring with an electronic health records company to unlawfully influence prescriptions.

First Assistant U.S. Attorney for Vermont Jonathan A. Ophardt acknowledged the limits of any legal resolution to fully capture the human devastation caused but hailed the sentence as a “substantial step” toward justice for New England families shattered by addiction.

Purdue’s guilty plea in November 2020 covered three felony counts, including the Vermont-related conspiracy. The New Jersey federal court ordered a $3.544 billion criminal fine tied to Purdue’s bankruptcy proceedings, plus an additional $2 billion in criminal forfeiture. Up to $1.775 billion of the forfeiture may be credited if Purdue restructures as a public benefit company dedicated to opioid abatement efforts, with proceeds directed to state and local programs.

Assistant Attorney General A. Tysen Duva called the case “one of the most important corporate enforcement cases ever brought by the Department of Justice,” emphasizing that Purdue’s reckless profit-driven actions fueled a national tragedy. The DOJ’s Criminal Division remains committed to prosecuting companies that prioritize illicit gains over public health and safety.

This $5 billion penalty sends a clear message: corporate greed that sacrifices lives for profit will not be tolerated. Vermont’s role in exposing Purdue’s criminal conduct was pivotal in breaking new ground to hold Big Pharma accountable for the opioid epidemic’s destruction. The fight for justice and prevention continues, but today’s verdict marks a hard-earned milestone in the battle against pharmaceutical corruption.