- 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)
Catholic School Expels Students After Discovering Mother’s OnlyFans Account
- Crystal Jackson, a California mother of three, said her boys were expelled from their Catholic school after other parents notified administrators of her OnlyFans account.
- Jackson, who started the account to boost her confidence and rekindle her relationship with her husband, said she only posts pinup-style photos in lingerie, not pornography.
- Now, she’s speaking out against the intense harassment she’s faced from parents in her community and has criticized the school’s decision to punish her children.
- She also said the school is working to update its handbook to include a rule that “any parent who is involved in a site or blog that goes against teachings of the church and school philosophy must be removed.”
Mother’s OnlyFans Account Draws Criticism
A mother in Sacramento, California says her three boys were expelled from their Catholic school after administrators discovered her OnlyFans account.
That mother is Crystal Jackson, who joined the site in 2019 to spice up her struggling relationship with her husband of 14 years, Chris.
Jackson says she does not post pornography on her account. Instead, she posts pinup-style photos in lingerie and includes “sexy stories” that play up the image of what she and Chris call “the mom next door.”
The account started as a secret between the two of them, but it has since become a huge success, bringing in over $150,000 a month along with hundreds of thousands of social media followers.
While the new venture has also brought her a boost of joy and self-confidence, her growing popularity on the platform eventually caught the attention of parents at Sacred Heart Parish School.
According to several interviews Crystal has given to media outlets, parents were relentlessly urging that her sons be kicked out of school.
They began harassing her with texts and voicemails bullying her and insulting her family. At one point, she says a group of mothers even printed out her OnlyFans photos and sent them anonymously in a packet to the school principal.
Some also reported her to their local priest and bishop and created a Facebook group to gossip about her family.
School Expels Mother’s Three Sons
But the issue escalated Sunday when the school sent her a letter notifying her of its decision.
“Your apparent quest for high-profile controversy in support of your adult website is in direct conflict with what we hope to impart to our students and is directly opposed to the policies laid out in our Parent/Student Handbook,” it read.
“We therefore require that you find another school for your children and have no further association with ours.”
Now, she says the school is working to update their handbook to include a rule that says: “Any parent who is involved in a site or blog that goes against teachings of the church and school philosophy must be removed.”
Crystal has continued to speak out against the school’s decision, telling People Magazine that her 8, 10, and 12 years old are good kids who are only being hurt by the school’s actions.
“Take me down, that’s fine, but leave my kids out of this,” she said.
“I didn’t want to be put out there, but at some point, I have to stand up and say I can’t take it anymore because this behavior is horrible,” she added.
Crystal noted that she was hoping to put her kids back in Catholic school but says she and her husband will likely have to put them in public school.
“They won’t allow them in this diocese, and is this really the place for them to be?” she said. “It’s clear that they said we don’t want you.”
“In the year 2021, here we are, trying to bring a woman down for her choices and what she does with her husband,” Crystal added. “It’s body shaming and bullying all encompassed into one and it’s such a double standard and disturbing.”
For now, she’s just hoping the judgment and harassment in her community will stop. “I’m still the same Crystal I was, like, two years ago, a year ago, when we had coffee, before you knew this.“
Nearly 9 Million Are Without Water in Texas, Some Face Electric Bills up To $17,000
- More than 8.8 million people in Texas remained under boil water notices Monday, and over 120,000 had no water service at all.
- Gov. Greg Abbott (R) said Sunday that the state has distributed around 3.5 million bottles of water, though many of the lines to receive that water were plagued with hours-long waits.
- Meanwhile, power outages in the state have fallen below 20,000, but many Texans are also beginning to receive astronomical electric bills of as much as $17,000.
- Both Abbott and Houston Mayor Sylvester Turner (D) said those prices are not the fault of customers. While some form of forgiveness is likely, no immediate plan has been outlined yet.
Millions Without Water
As of Monday morning, nearly 8.8 million people in Texas are still under boil water notices following last week’s snowstorm. That’s about one out of every three Texans.
Despite being a giant chunk of the state’s population, that figure is actually an improvement from 10 million people on Sunday.
Another 120,000 Texans are still without water service at all.
Gov. Greg Abbott (R) said Sunday almost 3.5 million bottles of water have been distributed across Texas by helicopter, airplane, and truck.
The need for water has been extremely visible. An Austin City Council member shared a video on Twitter Sunday showing a massive line of vehicles waiting for clean water. Some waited for more than an hour before the distribution event began. At another site, she said cars began lining up more than five hours before the event.
Abbott said the state is bringing in more plumbers to increase repair efforts for damaged water systems. Additionally, Abbott said homeowners without insurance could qualify for emergency reimbursement from FEMA.
Meanwhile, one large-scale effort from Rep. Alexandria Ocasio-Cortez (D-NY.) has now raised more than $5 million since first being launched on Thursday. That money will go to several organizations, including the Houston Food Bank, Family Eldercare, Feeding Texas, and the Bridge Homeless Recovery Center.
Texas Electric Bills Soar as High as $17K
All but just under 20,000 Texas homes and businesses have now had their power restored as of Monday morning.
That’s a stark contrast from the more than 4 million that were out of power at one point last week.
While that’s largely good news, many Texans are now beginning to receive sky-high electric bills. That’s especially evident for those whose power stayed on during the storm. In fact, some people have now told multiple media outlets they’re facing bills as high as $17,000.
One 63-year-old Army vet, who was charged $16,752, told The New York Times that his bill was about 70 times higher than normal.
“My savings is gone,” he said. “There’s nothing I can do about it, but it’s broken me.”
As far as why his and others’ eclectic bills are so high, many people in Texas have plans that are directly tied to the wholesale price of electricity. Usually, that helps keep their costs low, but as demand for power surged during last week’s snowstorm, those prices hit astronomical highs.
In a statement on Saturday, Abbott said Texas lawmakers “have a responsibility to protect Texans from spikes in their energy bills that are a result of the severe winter weather and power outages,”
He added that the state Legislature is working “on solutions to help Texas families and ensure they do not get stuck with skyrocketing energy bills.”
In a similar tone, Houston Mayor Sylvester Turner (D) said in an interview with CBS on Sunday, “It’s not the consumers who should assume [these] costs. They are not at fault for what happened this week.”
That said, Turner also laid blame at the feet of the Legislature, calling the current crisis “foreseeable” on the part of lawmakers because a similar snowstorm and outages struck Texas in 2011.
Turner added that, at the time, he was part of the Texas legislature and had filed a bill that would have required the agency overseeing Texas’ grid to “ensure that there was an adequate reserve to prevent blackouts.”
“The leadership in Austin did not give it a hearing,” he said.
While no aid has been fully guaranteed yet, Texas has prevented electric companies from being able to shut off power for people who don’t pay their bills on time.
See what others are saying: (NBC News) (The New York Times) (CNN)
Texans Still Face Broken Pipes, Flooding, and Carbon Monoxide Poisoning as Million Regain Power
- The number of Texans without power fell from 3.3 million on Wednesday to below 500,000 by Thursday.
- Still, millions are currently under a boil advisory, pipes have burst as they begin to thaw, and some individuals have died or been hospitalized because of carbon monoxide poisoning.
- The Federal Emergency Management Agency said Wednesday that it has sent generators, water, and blankets to Texas, adding that it’s working to send additional diesel for generators.
- Gov. Greg Abbott and President Joe Biden have also reportedly discussed the possibility of extra funding for people’s electricity bills, as well as for burst pipes.
Power May Be Back but Problems Persist
Power outages in Texas Thursday morning fell to under 500,000 — down from 3.3 million Wednesday morning.
According to the state’s main grid operator, the Electric Reliability Council of Texas (ERCOT), the remaining outages are largely weather-related and not connected to problems related to forced outages.
While that return of power to millions is significant, Texans are still facing a host of other problems.
For example, there have been numerous reports of carbon monoxide poisoning as people still without power try to keep warm in their cars or through other means. An adult and a child were found dead Tuesday after running their car inside of a garage, prompting Houston police to issue a statement warning that “cars, grills and generators should not be used in or near a building.”
Six children and four adults were rushed to the hospital Wednesday night for carbon monoxide poisoning after setting up grills inside their homes.
Even for those now with power, water has become a major issue. On Wednesday, 7 million Texans were placed on a boil advisory and about 263,000 were without functioning water providers.
One reporter tweeted out a video of people lining up at a park to fill up buckets of water.
“This is not a third world country,” she said. “This is Houston, Texas.”
The Food and Drug Administration and the National Weather Service have even cited melting and boiling snow as an emergency option if people can’t find water elsewhere, an option many have already turned to.
For some, all these problems only seemed to compound in the form of burst pipes. One viral video shows water gushing out of a third-story apartment. Others posted images of their broken pipes and the damage they have caused.
As a result, a number of local media outlets have begun to outline steps people can take once their pipes start to thaw or if they break.
Amid Problems, Aid is Being Distributed
Alongside the overwhelming amount of problems, there has also been a large aid response.
A FEMA spokesperson said Wednesday that the agency has sent 60 “very large” generators to help keep hospitals and other critical infrastructure open.
White House Press Secretary Jen Psaki added that FEMA is preparing to move diesel into Texas to keep that backup power going.
So far, FEMA said it has sent “millions of liters of water” and “tens of thousands” of blankets.
Governor Greg Abbott and President Joe Biden have also reportedly discussed the possibility of extra funding for people’s electricity bills, as well as for burst pipes. That’s because as the storm first hit, electrical demand surged. Since many Texans have plans connected to the wholesale price of electricity, they’re potentially set to be hit with sky-high bills.
Among other issues plaguing Texans is food spoilage; however, that can potentially be reimbursed through renters’ and homeowners’ insurance.
According to an official from the Insurance Council of Texas, “Food coverage is often related to personal property.”
Notably, there are some stipulations depending on individual circumstances and policy. To learn more about how insurance providers accept food spoilage claims, click here.