FDAnews Drug Daily Bulletin
Pharmaceuticals / Regulatory Affairs

New York Drug Distributor Will Pay $20 Million to Move on From Felony Trafficking Charges

May 2, 2019
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One of the nation’s ten largest drug distributors has agreed to pay $20 million as part of a consent decree with the federal government over felony criminal charges—the first ever targeting a distributor for illegal trafficking of controlled substances.

Rochester Drug Co-Operative (RDC) was charged with unlawful distribution of oxycodone and fentanyl and conspiracy to defraud.

The company’s former CEO Laurence Doud and former chief compliance officer William Pietruszewski were also hit with conspiracy charges; Pietruszewski pled guilty to his charges as part of a cooperation agreement.

The consent decree—which is subject to court approval—requires the distributor to accept responsibility for the alleged crimes and pay a $20 million penalty. The company will also be required to be subject to oversight by an independent monitor over the next five years. If it stays out of trouble, the government will look to dismiss the charges.

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