US Politics

Purdue Pharma owners hid millions in Swiss banks: NY AG

The family that owns OxyContin maker Purdue Pharma used Swiss bank accounts to conceal the transfer of millions of dollars from the company to themselves, New York states attorney general contends in court papers filed Friday.

New York — asking a judge to enforce subpoenas of companies, banks and advisers to Purdue Pharma and its owners, the Sackler family — said it has already documented $1 billion in transfers between those parties.

Those transactions include millions shifted from a Purdue Pharma parent company to former board member Mortimer D.A. Sackler, prosecutors said in the papers. Sackler then redirected substantial amounts to shell companies that own family homes in Manhattan and the Hamptons, prosecutors say.

Representatives for the branch of the family that includes Mortimer D.A. Sackler did not immediately respond to requests for comment.

The filing, made in a New York court, follows decisions by that state and others to reject a tentative settlement with Stamford, Connecticut-based Purdue Pharma announced this week, arguing it does not do enough to make amends for the companys and familys alleged roles in flooding U.S. communities with prescription painkillers.

Mock pill bottles distributed at the Purdue Pharma protest in Stamford.Erik McGregor/Sipa USA

As part of the settlement, Purdue Pharma is likely to soon file for bankruptcy protection. But New York and other states have promised they will continue to pursue the Sacklers, alleging that family members drained more than $4 billion from the company over the past dozen years to avoid future legal claims.

In its filing Friday,Read More – Source

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