Three former executives of Purdue Frederick are appealing a federal district court’s ruling upholding the Department of Health and Human Service’s (HHS) decision to ban them from working at any company that does business with federal healthcare programs for twelve years.  Purdue Frederick, the company that manufactures OxyContin, pled guilty to felony misbranding for failing to disclose the addictive risks associated with its drug.  Purdue Frederick’s parent company, Purdue Pharma, entered into a non-prosecution agreement and paid $600 million in fines.

All three executives pled guilty in 2007 to misdemeanor charges that, in breach of their responsibilities as corporate officers, they failed to prevent or promptly correct false or misleading representations with respect to OxyContin.  As a result, they were ordered to pay a $34 million disgorgement, but the company ultimately footed the bill.  The executives now challenge HHS’s interpretation of the plea, however, arguing that they admitted no conscious wrongdoing and that the twelve year suspension is unduly harsh.