Rochester Drug Co-operative's ex-CEO and compliance chief are accused of a scheme to distribute opioids to pharmacies that would sell to people who had no medical need.
Rochester Drug Cooperative ex-CEO Laurence Doud III has sued the company, claiming he was forced out and became a scapegoat for its mishandling of opioids.
Pietruszewski pleaded guilty Friday and agreed to cooperate with prosecutors, according to court records. The company, which bills itself as the nation’s seventh-largest drug distributor, is criminally charged with a narcotics conspiracy. It will pay a $20-million penalty, and prosecutors agreed to dismiss the case after five years if the company stays out of trouble.“Mr. Doud is being framed,” his lawyer Robert Gottlieb said in a statement. “The government just got it wrong.
The case is not the first against an opioid-company executive. Insys Therapeutics founder and ex-CEO John Kapoor is awaiting a Boston jury’s verdict on charges alleging he oversaw a scheme to bribe doctors to boost sales of the company’s top-selling opioid painkiller.Officials said the new charges were a major step in the U.S.
In a statement posted on its website, the company said that its “mistakes” were directed by former management. “We can do better, we are doing better and we will do better,” it said.According to prosecutors, company officials failed to alert the Drug Enforcement Administration to suspicious orders, as required by law.
“If the pharmacies were dynamite, then what was RDC? A warehouse of dynamite,” Ray Donovan, special agent in charge of the DEA’s New York office, said at the press conference.Doud has sued RDC, claiming he was forced out last year and became a scapegoat for the company’s mishandling of opioid painkillers. He said he was falsely accused of taking kickbacks in an effort to tarnish his reputation.
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