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Purdue Pharma Agrees To Plead Guilty To 3 Opioid-Related Charges in $8B Settlement, But Don’t Expect Them To Pay the Full Amount

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  • As part of a more than $8 billion settlement with the U.S. Department of Justice, Purdue Pharma will plead guilty to one count of conspiracy to defraud the U.S. government and two counts of violating anti-kickback, or bribery, laws.
  • Because Purdue filed for bankruptcy last year, that full figure likely won’t be collected by the government.
  • Under the settlement, which will need approval in bankruptcy court, Purdue would become a public benefit corporation that is controlled by the government, with revenue from opioid sales being used to fund treatment options and programs.
  • A number of state attorneys generals and Democratic lawmakers have said the settlement does not hold Purdue or its owners fully accountable and could derail thousands of other cases against the company.
  • They have also argued that the government should “avoid having special ties to an opioid company… that caused a national crisis.”

Purdue to Plead Guilty to 3 Criminal Charges

The Justice Department announced Wednesday that Purdue Pharma has agreed to plead guilty to three criminal charges related to fueling the country’s opioid epidemic. 

Notably, those guilty pleas come as part of a massive settlement worth more than $8 billion, though Purdue will likely only pay a fraction of that amount to the government.

Purdue is the manufacturer of oxycontin, which is a powerful and addictive painkiller that’s believed to have driven the opioid crisis. Since 2000, opioid addiction and overdoses have been linked to more than 470,000 deaths. 

As part of the settlement, Purdue will plead guilty to one count of conspiracy to defraud the United States. There, it will admit that it lied to the Drug Enforcement Administration by claiming that it had maintained an effective program to avoid opioid misuse. It will also admit to reporting misleading information to the DEA in order to increase its manufacturing quotas.

While Purdue originally told the DEA that it had “robust controls” to avoid opioid misuse, according to the Justice Department, it had “disregard[ed] red flags their own systems were sending up.”

Along with that guilty plea, Purdue will also plead guilty to two anti-kickback, or bribery, related charges. In one charge, it will admit to violating federal law by paying doctors to write more opioid prescriptions. In the other, it will admit to using electronic health records software to increase opioid prescriptions.

According to a copy of the plea deal obtained by the Associated Press, Purdue “knowingly and intentionally conspired and agreed with others to aid and abet” the distribution of opioids from doctors “without a legitimate medical purpose and outside the usual course of professional practice.”

The $8 billion in settlements will be split several different ways.

In one deal, the Sackler family — which owns Purdue — will pay $225 million to resolve civil fines. 

As part of the main deal, another $225 million will go directly to the federal government in a larger $2 billion criminal forfeiture; however, the government is actually expected to forego the rest of that figure.

In addition to that, $2.8 billion will go to resolving Purdue’s civil liability. Another $3.54 billion will go to criminal fines, but because Purdue filed bankruptcy last year, these figures also likely won’t be fully collected — largely because the government will now have to compete with other claims against Purdue in bankruptcy court.”

Purdue Will Become a “Public Benefit Company”

Since Purdue is in the middle of bankruptcy proceedings, a bankruptcy court will also need to approve the settlement.

“The agreed resolution, if approved by the courts, will require that the company be dissolved and no longer exist in its present form,” Deputy Attorney General Jeffrey Rosen said. 

However, that doesn’t mean that Purdue’s fully gone or that it will even stop making oxycontin. In fact, as part of this settlement, the Sacklers would relinquish ownership of Purdue, and it would then transform into what’s known as a public benefit company.

Essentially, that means it would be run by the government. Under that setup, money from limited oxycontin sales, as well as from sales of several overdose-reversing medications, would be pumped back into treatment initiatives and other drug programs aimed at combating the opioid crisis.

For its part, the Justice Department has endorsed this model. 

Should Purdue Be Punished More?

There has been strong opposition to this deal, mainly from state attorneys general and Democratic members of Congress who say it doesn’t go far enough.

Those critics argue that the settlements don’t hold Purdue or the Sackler family fully accountable, especially the Sacklers since — unlike Purdue — they didn’t have to admit any wrongdoing.

“[W]hile our country continues to recover from the pain and destruction left by the Sacklers’ greed,” New York Attorney General Letitia James said, “this family has attempted to evade responsibility and lowball the millions of victims of the opioid crisis. Today’s deal doesn’t account for the hundreds of thousands of deaths or millions of addictions caused by Purdue Pharma and the Sackler family.”

“If the only practical consequence of your Department’s investigation is that a handful of billionaires are made slightly less rich, we fear that the American people will lose faith in the ability of the Department to provide accountability and equal justice under the law,” A coalition of 38 Democratic members of Congress said in a statement to Attorney General Bill Barr last week.

While this settlement doesn’t include any convictions against the Sacklers specifically, as the Justice Department noted, it also doesn’t release them from criminal liability and a separate criminal investigation is ongoing. 

Still, last week, 25 state attorneys general asked Barr not to make a deal that includes converting Purdue into a public benefit company, urging the Justice Department to “avoid having special ties to an opioid company, conflicts of interest, or mixed motives in an industry that caused a national crisis.” 

Part of their concern is that the government would essentially run this new company while also holding the original one accountable. Those attorneys general instead argued that Purdue should be run privately but with government oversight. 

See what others are saying: (Associated Press) (The New York Times) (Fox Business)

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Inmates Sue Jail for Giving Them Ivermectin to Treat COVID-19 Without Consent

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Four detainees who filed the suit allege that the jail’s doctor gave them “incredibly high doses” of the anti-parasite in a “cocktail of drugs” that he said were “‘vitamins’, ‘antibiotics,’ and/or ‘steroids.’”


Washington County Detention Center Lawsuit

Four inmates at an Arkansas jail have filed a federal lawsuit claiming that they were unknowingly given the anti-parasite drug ivermectin without their consent by the detention center’s doctor after contracting COVID-19.

The Food and Drug Administration, the Centers for Disease Control and Prevention, and countless other medical experts have said that ivermectin — commonly used for livestock — can be dangerous and should not be used to treat the coronavirus.

According to the lawsuit, after testing positive for COVID in August, the four men at the Washington County Detention Center (WCDC) were given a “cocktail of drugs” twice a day by the facility’s doctor, Robert Karas.

The inmates claim that Dr. Karas did not tell them that he was giving them ivermectin, but instead said the drugs consisted of “‘vitamins’, ‘antibiotics,’ and/or ‘steroids.’”

The complaint also alleges that the detainees were given “incredibly high doses” of the drug, causing some to experience “vision issues, diarrhea, bloody stools, and/or stomach cramps.”

Use on Other Inmates

The four plaintiffs were far from the only people to whom Karas gave ivermectin.

According to the lawsuit, the doctor began using the drug to treat COVID starting in November of 2020. In August, the Washington County sheriff confirmed at a local finance and budget committee meeting that the doctor had been prescribing the drug to inmates, prompting the Arkansas Medical Board to launch an investigation.

In response, Karas informed a Medical Board investigator in a letter from his attorney that 254 inmates at the facility had been treated with ivermectin.

In the letter, he confirmed that whether or not detainees were given information about ivermectin was dependent on who administered it, but paramedics were not required to discuss the drug with them.

He also admitted that after the practice got media coverage, he “adopted a more robust informed consent form to assuage any concern that any detainees were being misled or coerced into taking the medications, even though they weren’t.”

The American Civil Liberties Union of Arkansas, which filed the suit on behalf of the inmates, also claimed in a statement that after questions were raised about the practice, the jail attempted to make detainees sign forms saying that they retroactively agreed to the treatments. 

The WCDC has not issued a public response to the lawsuits, but Dr. Karas appeared to address the situation in a Facebook post where he defended his actions.

“Guess we made the news again this week; still with best record in the world at the jail with the same protocols,” he wrote. “Inmates aren’t dumb and I suspect in the future other inmates around the country will be suiing their facilities requesting same treatment we’re using at WCDC-including the Ivermectin.”

See what others are saying: (The New York Times) (CBS News) (NBC News)

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Medical Workers Sign Letter Urging Spotify to Combat Misinformation, Citing Joe Rogan

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The letter accused Spotify of “enabling its hosted media to damage public trust in scientific research.”


Doctors and Medical Professionals Sign Letter to Spotify

A group of 270 doctors, scientists, and other medical workers signed an open letter to Spotify this week urging the audio platform to implement a misinformation policy, specifically citing false claims made on the “Joe Rogan Experience” podcast. 

Rogan has faced no shortage of backlash over the last year for promoting vaccine misinformation on his show, which airs exclusively on Spotify. Most recently, he invited Dr. Robert Malone on a Dec. 31 episode that has since been widely criticized by health experts. 

Dr. Malone was banned from Twitter for promoting COVID-19 misinformation. According to the medical experts who signed the letter, he “used the JRE platform to further promote numerous baseless claims, including several falsehoods about COVID-19 vaccines and an unfounded theory that societal leaders have ‘hypnotized’ the public.”

“Notably, Dr. Malone is one of two recent JRE guests who has compared pandemic policies to the Holocaust,” the letter continued. “These actions are not only objectionable and offensive, but also medically and culturally dangerous.”

Joe Rogan’s History of COVID-19 Misinformation

Rogan sparked swift criticism himself in the spring of 2021 when he discouraged young people from taking the COVID-19 vaccine. He also falsely equated mRNA vaccines to “gene therapy” and incorrectly stated that vaccines cause super mutations of the virus. He took ivermectin after testing positive for the virus in September, despite the fact that the drug is not approved as a treatment for COVID.

“By allowing the propagation of false and societally harmful assertions, Spotify is enabling its hosted media to damage public trust in scientific research and sow doubt in the credibility of data-driven guidance offered by medical professionals,” the doctors and medical workers wrote. 

“We are calling on Spotify to take action against the mass-misinformation events which continue to occur on its platform,” they continued. “With an estimated 11 million listeners per episode, JRE is the world’s largest podcast and has tremendous influence. Though Spotify has a responsibility to mitigate the spread of misinformation on its platform, the company presently has no misinformation policy.”

Rolling Stone was the first outlet to report on the letter from the medical professionals. Dr. Katrine Wallace, an epidemiologist at the University of Illinois Chicago, was among the signees. She told the magazine that Rogan is “a menace to public health.”

“These are fringe ideas not backed in science, and having it on a huge platform makes it seem there are two sides to this issue,” she said. “And there are really not.”

Spotify had not responded to the letter as of Thursday.

See what others are saying: (Rolling Stone) (Deadline) (Insider)

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Data Shows Omicron May be Peaking in the U.S.

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In some cities that were first hit by the surge, new cases are starting to flatten and decline.


New Cases Flattening

After weeks of recording-breaking cases driven by the highly infectious omicron variant, public health officials say that new COVID infections seem to be slowing in the parts of the country that were hit the hardest earlier on.

Following a more than twentyfold rise in December, cases in New York City have flattened out in recent days. 

New infections have even begun to fall slightly in some states, like Maryland and New Jersey. In Boston, the levels of COVID in wastewater — which has been a top indicator of case trends in the past — have dropped by nearly 40% since the first of the year.

Overall, federal data has shown a steep decline in COVID-related emergency room visits in the Northeast, and the rest of the country appears to be following a similar track.

Data from other countries signals the potential for a steep decline in cases following the swift and unprecedented surge.

According to figures from South Africa, where the variant was first detected, cases rose at an incredibly shocking rate for about a month but peaked quickly in mid-December. Since then, new infections have plummeted by around 70%.

In the U.K., which has typically been a map for how U.S. cases will trend, infections are also beginning to fall after peaking around New Year’s and then flattening for about a week.

Concerns Remain 

Despite these recent trends, experts say it is still too early to say if cases in the U.S. will decline as rapidly as they did in South Africa and the parts of the U.K. that were first hit. 

While new infections may seem to be peaking in the cities that saw the first surges, caseloads continue to climb in most parts of the country. 

Meanwhile, hospitals are overwhelmed and health resources are still strained because of the high volume of cases hitting all at once.

See what others are saying: (The New York Times) (The Washington Post) (The Wall Street Journal)

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