In a groundbreaking move, the federal government has charged Rochester Drug Cooperative, along with its former CEO, Daniel Martin, and ex-chief compliance officer, Sarah Thompson, in connection with the nationwide opioid crisis. This case marks a historic moment as it is the first time a major pharmaceutical distributor and its executives face criminal charges linked to the epidemic affecting countless lives across the United States.
Rochester Drug Cooperative, recognized as the sixth-largest drug distributor in the country, is accused of conspiring to violate narcotics laws and defraud the federal government. Reports indicate that between 2012 and 2016, the company willfully neglected to report thousands of suspicious orders for powerful opioids such as oxycodone and fentanyl. In court, the company acknowledged its culpability, as reported by NBC News.
Rochester Drug’s business model connects opioid manufacturers with pharmacies, a practice that has come under intense scrutiny. Both Martin and Thompson face severe charges, including conspiracy to distribute controlled substances and conspiracy to defraud the government, with potential sentences reaching life in prison. This unprecedented legal action underscores the accountability of pharmaceutical executives for their part in the opioid crisis.
U.S. Attorney for the Southern District of New York, Geoffrey S. Berman, emphasized the significance of the case: “This prosecution is the first of its kind: Executives of a pharmaceutical distributor and the distributor itself have been charged with drug trafficking, trafficking the same drugs that are fueling the opioid epidemic that is ravaging this country.” He affirmed the commitment of his office to combat the crisis at all levels, from street dealers to corporate executives.
While other drug distributors like Cardinal Health, CVS, McKesson, and Walgreens have previously faced financial penalties totaling millions, this is the first instance of federal criminal charges against a distributor. Historically, such charges have been directed only at individual drug dealers and traffickers.
The opioid crisis has reached alarming proportions, with the U.S. consuming a staggering 80% of the world’s opioid supply. Prescription rates have soared from 76 million in 1991 to 207 million in 2013. Overdose deaths involving prescription opioids have quadrupled since 1999, and emergency rooms treat over 1,000 cases of opioid misuse each day.
Rochester Drug is accused of distributing tens of millions of doses of opioids to pharmacies that its own compliance team identified as having no legitimate need for these drugs. Following the crisis, a new management team was established in 2017 to implement “significant changes” aimed at improving compliance practices. Spokesperson Jeff Eller stated, “From 2012 to 2017, we did not have adequate systems in place nor were our compliance team and practices rigorous enough to provide adequate controls and oversight over the increased demand for narcotic drug products from pharmacies.”
In response to the legal proceedings, Rochester Drug has agreed to a $20 million settlement with the federal government for civil and criminal claims tied to its role in exacerbating the opioid epidemic.
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In summary, the indictment of Rochester Drug and its executives signifies a pivotal moment in holding pharmaceutical companies accountable for their actions in the ongoing opioid crisis, as well as highlighting the need for improved compliance and oversight measures within the industry.
Keyphrase: Drug Executives Charged in Opioid Crisis
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