In a groundbreaking legal move, two top executives from the Rochester Drug Cooperative have been criminally charged in connection with the ongoing opioid crisis, marking a historic first in the United States. The federal government has held the company and its former CEO, Jason Miller, accountable for allegedly conspiring to violate narcotics laws and defrauding the government.
Rochester Drug Cooperative, the sixth-largest drug distributor in the country, is accused of intentionally ignoring reports of thousands of suspicious orders for powerful opioids like oxycodone and fentanyl. In a recent court appearance, the company essentially acknowledged its wrongdoing, as reported by NBC News.
Under the guise of connecting opioid manufacturers and pharmacies, the company allegedly distributed tens of millions of doses of these addictive substances, even to pharmacies identified as having no legitimate need for them between 2012 and 2016. The new management team, instituted in 2017, aimed to implement “significant changes” and adhere to compliance measures.
Both Miller and the former chief compliance officer, Sarah Thompson, face serious charges, including conspiracy to distribute controlled substances and conspiracy to defraud the federal government. If convicted, they could potentially face life sentences. Geoffrey S. Berman, U.S. Attorney for the Southern District of New York, emphasized the unprecedented nature of these charges, stating, “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.”
While other major corporations—such as Cardinal Health, CVS, and Walgreens—have faced hefty fines related to the opioid crisis, this marks the first time a drug distributor has faced federal criminal charges, a step that was previously reserved for street-level drug dealers and traffickers.
The opioid epidemic has escalated dramatically, with the U.S. consuming roughly 80% of the world’s opioids. In just over two decades, prescriptions surged from 76 million in 1991 to a staggering 207 million in 2013. The toll has been devastating, with overdose deaths involving prescription opioids quadrupling since 1999, and approximately 1,000 individuals treated daily in emergency rooms for opioid misuse.
In light of these developments, Rochester Drug has reached an agreement to pay $20 million to settle both civil and criminal claims, acknowledging its role in exacerbating the opioid crisis.
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In summary, the recent criminal charges against Rochester Drug Cooperative and its executives mark a significant step in holding pharmaceutical companies accountable for their roles in the opioid crisis. With the U.S. grappling with an epidemic, this case sets a precedent for future prosecutions within the industry.
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