Federal Prosecutors Criminally Probe Drugmakers Compliance With Controlled Substances Act

Six pharmaceutical companies have disclosed in SEC filings that they are the subject of a federal investigation into their handling of opioids and their compliance with the Controlled Substances Act (CSA).

Drugmakers Teva, Mallinckrodt, Amneal, and Johnson & Johnson, along with distributors McKesson and Amerisource Bergen have disclosed that they have received grand jury subpoenas from the U.S. Attorney’s Office for the Eastern District of New York related to the industry’s monitoring and diversion policies under the CSA.

Drug companies are required to monitor commonly abused drugs like opioids under the CSA and report suspicious orders to the federal government. Federal prosecutors are going after pharma companies and their compliance with the CSA, which is usually used to prosecute drug dealers.