New drugmaker Purdue Pharma has agreed to pay a record $2 billion to settle charges it misled the U.S. government about the effectiveness of its OxyContin prescription painkillers.
The deal, the largest in U.N. history, resolves a federal lawsuit filed by the U:The deal, signed Friday, is the largest civil penalty ever levied by the United States government over opioid abuse, a department official said.
The amount includes the costs of the criminal investigation and court proceedings.
The settlement follows a federal court decision in February that invalidated an earlier settlement by the company.
The agreement, the first of its kind in U:history, will help the company recoup millions of dollars it had previously spent on lawyers’ fees, as well as court costs.
Purdue agreed to an agreement with the U., which is part of the U’s investigation into the company’s opioid-pill diversion program, and to pay $1.5 billion to resolve the lawsuit.
It also agreed to forfeit assets valued at more than $20 billion.
Pavlov, Purdue spokesmanMark Gorman said the company will continue to work closely with the government on its recovery efforts.
The company’s CEO, Brian Creagh, was fired earlier this month amid a criminal investigation into diversion of the drug.PJ Media reached out to Creagh’s attorneys and the U but did not immediately hear back.
PepsiCo also agreed Friday to pay another $1 billion to the U, which was also part of an investigation into OxyContin diversion, as part of a separate settlement.
It is also seeking to recoup $1 million from the company for damages related to its misleading marketing and advertising.