Judge to Sentence Purdue Pharma, Forfeit $225M in Opioid Case

A federal judge in Connecticut is set to sentence Purdue Pharma on Tuesday, requiring the OxyContin manufacturer to forfeit $225 million to the Justice Department and paving the way for a multibillion-dollar settlement resolving thousands of lawsuits tied to the company's role in the opioid crisis.

The sentencing stems from a 2020 plea agreement in which Purdue, based in Stamford, admitted guilt to three federal criminal charges. The company acknowledged misleading the U.S. Drug Enforcement Administration about its efforts to prevent powerful prescription painkillers from reaching the black market. It also confessed to paying doctors through a speakers program to increase opioid prescriptions and compensating an electronic health records company, Practice Fusion, to promote its drugs by alerting providers to patients who might need more opioids. These practices occurred between 2007 and 2017, according to court documents.

If approved, the judge's decision would waive additional penalties totaling about $8.1 billion in criminal and civil liabilities. In exchange, Purdue would finalize a broader settlement approved by another court last year, potentially effective May 1. Under the...