What Does a Criminal Fine Mean, and Who Paid the Largest One in US History?

A criminal fine is a court-ordered monetary penalty imposed as punishment for a crime, also known by the older legal term "mulct." As of 2026, Purdue Pharma holds the record for the largest criminal fine ever imposed on a corporation in the United States: a $3.544 billion fine, plus a separate $2 billion forfeiture, that a federal judge imposed in April 2026 over the company's role in the opioid crisis. Purdue's fine surpassed the previous record holders, Volkswagen and, before that, Pfizer.

What are fines and penalties?

A fine is a money payment a court demands from an individual who has committed a crime. The penalty can respond to a civil or criminal violation, and either the judge or a state statute sets the amount.

For example, under Florida Statute 775.083, governing fines, a Florida court can impose a maximum fine of $500 for a second-degree misdemeanor or a noncriminal violation. That maximum rises to $1,000 for a first-degree misdemeanor.

When imposing a fine in the US, the court must consider several factors, including:

• The level of fine available for the offense under state law.
• The state's sentencing guidelines and the seriousness of the offense.
• The defendant's means and ability to pay.

Who paid the largest criminal fine in US history?

As of 2026, Purdue Pharma holds the record. On April 28, 2026, a federal judge in the U.S. District Court for the District of New Jersey sentenced Purdue Pharma to a $3.544 billion criminal fine plus a separate $2 billion criminal forfeiture, the largest criminal penalty ever imposed on a pharmaceutical manufacturer. The sentence followed Purdue's 2020 guilty plea to three federal felony counts, including conspiracy to defraud the United States and conspiracy to violate the federal Anti-Kickback Statute, over its marketing of the opioid painkiller OxyContin and its role in the opioid crisis.

Purdue's fine surpassed the previous record holder, Volkswagen. In January 2017, Volkswagen AG pled guilty to three felony counts and paid a $2.8 billion criminal fine after installing software that let roughly 590,000 US diesel vehicles cheat federal emissions tests.

Before Volkswagen, Pfizer held the record. In 2009, Pfizer's subsidiary pled guilty to a felony violation of the Food, Drug, and Cosmetic Act and paid what was then the largest criminal fine in US history, and it remains the largest ever imposed on a pharmaceutical manufacturer other than Purdue Pharma. Why?

What crime did Pfizer commit?

The company promoted off-label uses of Bextra, an anti-inflammatory pain reliever, with the intent to defraud or mislead the public.

The FDA's regulatory program enforces the Food, Drug, and Cosmetic Act through actions that punish offenders, remove violating products from the market, and correct or prevent further violations.

Under the general federal fine statute, 18 U.S.C. 3571, an individual convicted of a felony can be fined up to $250,000, and an organization convicted of a felony can be fined up to $500,000. The same statute lets a court impose a much larger "alternative fine" of up to twice the gross financial gain the defendant made from the crime, or twice the gross loss it caused, whichever is greater. That alternative-fine provision is why fines like Pfizer's $1.195 billion penalty and Purdue Pharma's $3.544 billion penalty were legally possible despite the nominal $500,000 cap.

Bextra was an arthritis and pain medication that the FDA asked Pfizer to withdraw from the market in April 2005. The FDA cited an increased risk of heart attack and stroke, plus a risk of serious and sometimes fatal skin reactions, and said it had received several reports of deaths associated with those skin reactions.

Pfizer also illegally promoted Geodon, Zyvox, and Lyrica for unapproved uses.

Pfizer had to pay both criminal and civil fines

The FDA concluded that Bextra's risks outweighed its benefits for the uses Pfizer was promoting, and some patients suffered serious or fatal reactions.

Because of that, the court imposed both a criminal fine and a separate civil settlement on Pfizer. Whistleblowers, including a former Pfizer sales representative, filed qui tam lawsuits under the federal False Claims Act, which led to a $1 billion civil settlement covering claims submitted to federal and state health care programs, on top of the criminal fine.

In short:

• Pfizer's subsidiary, Pharmacia and Upjohn Company, pled guilty to a felony violation of the Food, Drug, and Cosmetic Act.
• Pfizer ran an aggressive, unlawful campaign to promote off-label uses of Bextra and other drugs.
• Six whistleblowers who filed qui tam lawsuits split more than $102 million of the settlement.
• Pharmacia and Upjohn also forfeited $105 million on top of its criminal fine.

Pfizer paid a $1.195 billion criminal fine.

For its felony violation of the Food, Drug, and Cosmetic Act, Pharmacia and Upjohn Company paid a $1.195 billion criminal fine, the largest of its kind at the time.

For other record-setting corporate fines and settlements, including BP's Deepwater Horizon penalties and Facebook's FTC privacy fine, see The Most Expensive Criminal and Civil Fines.

What is the difference between fines and damages?

The difference between a fine and damages is that damages are a civil remedy, while a fine is a criminal sanction. If you violate criminal law, one option the court has is to impose a fine. On the other hand, if your actions cause someone else harm, that person may be able to sue you for damages in civil court.

Damages can be compensatory or punitive. For example, if your negligent actions cause injury to someone, a civil court may award compensatory damages to cover their losses, and in some cases, punitive damages to punish especially reckless conduct.

Why do people receive criminal fines?

A criminal fine serves to punish the offender and deter the offense. Consequently, in most states, the fines and penalties for repeat offenses are higher than first-time offenses. For some misdemeanors or petty offenses, such as jaywalking, the court or arresting officer, depending on state law, may impose a fine only.

Why are petty offenses punishable by fines and no jail time?

Infractions or petty offenses are statutory violations that do not warrant jail time. In the US, you do not have a right to a jury trial when accused of a petty offense.

On top of that, the court does not have the obligation to appoint an attorney for you. However, you may hire one if you choose to.

Is it a criminal offense not to pay a fine?

Yes. Depending on state law, if you do not pay a fine, the court may increase your penalties, or you may go to jail.

During sentencing, the court may order you to serve time or pay a fine. If you cannot or choose not to pay a fine, you will serve time. It is also possible for the court to order time and a fine.

What if you are unable to pay a fine?

Depending on state law, you may request the court to order alternative sanctions. Your options include:

• Request an extension.
• Ask for a reduction of the fine.
• Ask the court to substitute community service.

It is also worth noting that 18 U.S.C. 3572, section (e), reads:

"At the time a defendant is sentenced to pay a fine, the court may not impose an alternative sentence to be carried out if the fine is not paid."

Also, section (h), "delinquency," reads, quote:

"DELINQUENCY. —A fine or payment of restitution is delinquent if a payment is more than 30 days late."

Note. Willful failure to pay a fine is a crime that may result in additional fines or prison time.

Important:

If you are unable to pay court-ordered fines, you should contact a fines officer at the court and request a reduction. Legal experts recommend that you do this before you miss a payment. If you do not do that, or if you miss payments, the consequences include:

• The court may send you to prison.
• The court may order your employer to garnish a percentage of your wages, salary, or benefits.
• If you receive government benefits, the state may withhold a percentage of them.
• In some states, enforcement agents may seize and auction your property.
• The court may order community service or another suitable penalty instead.
• The debt may be reported to a credit bureau.

What factors must the court consider when imposing a fine?

Under 18 U.S.C. 3572, "Imposition of a sentence of fine and related matters," the court must consider:

• The defendant's income, earning capacity, and financial resources.
• The need to deprive the defendant of illegally acquired gains or benefits.
• The financial burden the fine will impose on the defendant and any dependents.
• Whether the defendant can pass the cost of the fine on to consumers or other people.
• The financial loss the offense inflicted on any victim.
• The size of the organization, if the defendant is an organization.
• The amount of any restitution the defendant owes.

Note, section (b) of the statute reads, quote:

"If, as a result of a conviction, the defendant has the obligation to make restitution to a victim of the offense, other than the United States, the court shall impose a fine or other monetary penalties only to the extent that such fine or penalty will not impair the ability of the defendant to make restitution"

The rules are different when the accused is an organization such as Pfizer.

"If the defendant is an organization, the size of the organization and any measure taken by the organization to discipline any officer, director, employee, or agent of the organization responsible for the offense and to prevent a recurrence of such an offense."

Note. The ability-to-pay determination does not apply to all cases.

Fines in the US: what to remember

• You may be able to appeal a fine, request a reduction, or ask for an alternative punishment, depending on the crime and state law.
• A court may waive or reduce your fine.
• Failure to pay a fine may result in prison.
• Before a court imposes certain fines, there may need to be an ability-to-pay hearing.

What crimes carry the highest fines in the US?

Fine amounts vary enormously by state and by offense. Federal felony fines can reach the $250,000 individual or $500,000 organization caps discussed above, or much higher under the alternative-fine provision for crimes that produced a large financial gain or loss. At the state level, drug trafficking, environmental crimes, and financial crimes tend to carry some of the highest maximum fines, since many states allow enhanced fines tied to the value of drugs involved or the amount of financial loss. Fine amounts also often track the severity of the underlying charge; for example, first-degree murder carries harsher penalties than second-degree or third-degree murder, including higher fines where a state allows one at all.

Remember, the facts of the case and the applicable state or federal statute determine the maximum fine a court may impose.