Michigan AG Cox Announces Settlement with Purdue Pharmaceuticals

September 14, 2007 -- LANSING - Michigan Attorney General Mike Cox today announced that he has reached a settlement with The Purdue Frederick Company, Inc. of New York and Purdue Pharma, L.P. of Delaware (collectively "Purdue"), which are associated entities engaged in the manufacture, marketing, and distribution of OxyContin.

As a result of a four-year investigation by the United States Attorney's Office for the Western District of Virginia, in conjunction with other state and law enforcement agencies, The Purdue Frederick Company and its top three executives pled guilty in the federal court to charges of knowingly and fraudulently misbranding OxyContin as being less addictive, less subject to abuse, and less likely to cause tolerance and withdrawal problems than other pain medications.

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"Drugs that are mislabeled, misbranded, or cause consumers to be misled can be dangerous and deadly," said Cox. "I am committed to protecting Michigan consumers and recovering the financial restitution our State deserves."

Purdue also entered into civil agreements with the federal government and several states, in which Purdue agreed that out of the $634.5 million settlement, it would pay $160 million to the federal government and state Medicaid programs to compensate the Medicaid programs for damages caused by the misbranding of OxyContin from 1995 through 2005. OxyContin is an extended-release form of oxycodone.

Under the terms of the settlement, the State of Michigan has recovered $3,013,088.09 for the Michigan Medicaid program; $1,440,153.54 of that amount will be paid directly to the State, with the balance going to the federal government to reimburse its share of the Medicaid costs.

The civil settlements with Purdue will further require the company to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services to monitor the company's operations and ensure future compliance with all laws and regulations.

Between January 2003 and September 2007, Attorney General Cox's Health Care Fraud Division has recovered over $78 million dollars.

Source: Michigan Attorney General