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Wednesday, June 20, 2007

Judge questions why drug-firm executives in OxyContin case aren't going to jail

"A federal judge is raising questions about a plea agreement that calls for $634.5 million in fines -- but no jail time -- for the illegal marketing of OxyContin," a painkiller that became a street drug and a scourge in Central Appalachia, reports Laurance Hammack of The Roanoke Times. "Before sentencing three Purdue Pharma executives next month, U.S. District Judge James Jones will consider responses to 16 questions he recently submitted to federal prosecutors and company officials. One of the questions: Why should the executives not be sent to jail?"

Prosecutors replied, "While it certainly is appropriate for the corporate officials to be held accountable for the actions of the company, a sentence of incarceration ... would be unusual." The case itself is unusual, and "It's unusual for a judge to have so many questions about a plea agreement," Hammack notes. If Jones rejects the plea agreements, the three executives could withdraw their pleas.

"The misdemeanor charges to which the executives pleaded guilty carry up to one year in jail; the company pleaded guilty to a felony charge," Hammack reports. "Such charges are rarely used in the misbranding of pharmaceuticals, the government stated, and the negotiated plea agreements will "serve as a strong warning" to other drug companies."

Prosecutors said the fine "accounts for about 90 percent of the company's profits from the time the drug went on the market in 1996 until 2001," Hammack writes. "The fine is the country's third largest to be assessed against a pharmaceutical company." (Read more)

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