OxyContin-maker Purdue Pharma and the family that owns the drugmaker have been hit by a lawsuit from New York state, CBS News is reporting.
State prosecutors are alleging money was fraudulently transferred out of the company.
"We found that pharmaceutical manufacturers and distributors engaged in years of deceptive marketing about the risks of opioids and failed to exercise their basic duty to report suspicious behavior, leading to the crisis we are living with today," New York Attorney General Letitia James said. "As the Sackler family and the other defendants grew richer, New Yorkers' health grew poorer and our state was left to foot the bill."
Eight members of the Sackler family used various corporate entities "as vehicles to transfer funds from Purdue directly or indirectly to themselves," the lawsuit claims, according to the network news.
The suit also alleges the Sacklers formed Rhodes, a new company, to make drugs for treating opioid addiction after Purdue was under federal investigation for its opioid marketing practices.
"The Sacklers' full understanding of opioids' abuse and addiction risk is underscored by their willingness to research, quantify, and ultimately monetize opioid abuse and addiction by pursuing the development of medications to treat the addiction their own opioids caused," the suit said.
Earlier this week, Purdue Pharma LP and members of the Sackler family reached a $270 million settlement to resolve a suit brought by Oklahoma accusing the drugmaker of fueling an opioid epidemic.
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