Posted on Mar 3, 2022
Purdue Pharma, US states agree to new opioid settlement
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OxyContin maker Purdue Pharma reached a settlement Thursday over its role in the opioid crisis that includes virtually all U.S. states and thousands of local governments, with the Sackler family members who own the company boosting their cash contribution to as much as $6 billion.
The deal follows an earlier settlement that had been appealed by eight states and the District of Columbia. They agreed to sign on after the Sacklers kicked in more cash — including a portion that just those jurisdictions would control — and accepted other terms. In exchange, the family would be protected from civil lawsuits.
The deal follows an earlier settlement that had been appealed by eight states and the District of Columbia. They agreed to sign on after the Sacklers kicked in more cash — including a portion that just those jurisdictions would control — and accepted other terms. In exchange, the family would be protected from civil lawsuits.
Purdue Pharma, US states agree to new opioid settlement
Posted from opb.org
Drugs
Pharmaceuticals
Lawsuit
Posted 2 y ago
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How do you measure the cost of all those not only ruined lives but ruined families from opioids
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PO1 William "Chip" Nagel
..."“We’re pleased with the settlement achieved in mediation, under which all of the additional settlement funds will be used for opioid abatement programs, overdose rescue medicines, and victims,” Purdue Pharma said in a statement issued separately from the family’s. “With this mediation result, we continue on track to proceed through the appeals process on an expedited schedule, and we hope to swiftly deliver these resources.”
Kentucky and Oklahoma are not part of the deal because they both reached previous settlements with Purdue.
Purdue, the originator of time-release versions of powerful prescription painkillers, is the highest-profile company out of many that have faced lawsuits over the crisis. It has twice pleaded guilty to criminal charges related to its business practices around OxyContin.
The latest announcement follows another landmark settlement late last week, when drugmaker Johnson & Johnson and three distributors finalized a settlement that will send $26 billion over time to virtually every state and local governments throughout the U.S.
There are two key differences between the the latest Purdue settlement and the previous one struck last year. The Sacklers’ cash contribution has gone up by at least $1.2 billion, and state attorneys general and the District of Columbia have now agreed.
The money is to begin flowing after Purdue, which is to be renamed Knoa Pharma, emerges from bankruptcy. It’s not clear when that will be. The last payment under the settlement is not scheduled to be made until 2039.
Last year, the eight states and D.C. refused to sign on, and then most of them appealed after the deal was approved by the bankruptcy judge.
In December, a U.S. district judge sided with the nine holdouts. The judge, Colleen McMahon, rejected the settlement with a finding that bankruptcy judges lack the authority to grant legal protection to people who don’t themselves file for bankruptcy when some parties disagree.
Purdue appealed that decision, which, if left standing, could have scuttled a common method of reaching settlements in sweeping, complicated lawsuits.
The attorneys general who have signed on are dropping from the main legal battle but are still free to write briefs to tell courts not to allow the protections for people who do not file for bankruptcy themselves.
Connecticut Attorney General William Tong has repeatedly said he has felt a “special obligation to be aggressive” in the case because Purdue is headquartered in the state. He expressed some disappointment Thursday with the final settlement, even though he said it was 40% more than the previous one.
“I wanted more. I still want more. But I took it as far as I could take it,” he said during a news conference. “If we were to continue, we would do it alone and that is untenable.”
The new settlement requires approval from U.S Bankruptcy Judge Robert Drain. Appeals related to the previous version of the plan could continue moving through the court system."
..."“We’re pleased with the settlement achieved in mediation, under which all of the additional settlement funds will be used for opioid abatement programs, overdose rescue medicines, and victims,” Purdue Pharma said in a statement issued separately from the family’s. “With this mediation result, we continue on track to proceed through the appeals process on an expedited schedule, and we hope to swiftly deliver these resources.”
Kentucky and Oklahoma are not part of the deal because they both reached previous settlements with Purdue.
Purdue, the originator of time-release versions of powerful prescription painkillers, is the highest-profile company out of many that have faced lawsuits over the crisis. It has twice pleaded guilty to criminal charges related to its business practices around OxyContin.
The latest announcement follows another landmark settlement late last week, when drugmaker Johnson & Johnson and three distributors finalized a settlement that will send $26 billion over time to virtually every state and local governments throughout the U.S.
There are two key differences between the the latest Purdue settlement and the previous one struck last year. The Sacklers’ cash contribution has gone up by at least $1.2 billion, and state attorneys general and the District of Columbia have now agreed.
The money is to begin flowing after Purdue, which is to be renamed Knoa Pharma, emerges from bankruptcy. It’s not clear when that will be. The last payment under the settlement is not scheduled to be made until 2039.
Last year, the eight states and D.C. refused to sign on, and then most of them appealed after the deal was approved by the bankruptcy judge.
In December, a U.S. district judge sided with the nine holdouts. The judge, Colleen McMahon, rejected the settlement with a finding that bankruptcy judges lack the authority to grant legal protection to people who don’t themselves file for bankruptcy when some parties disagree.
Purdue appealed that decision, which, if left standing, could have scuttled a common method of reaching settlements in sweeping, complicated lawsuits.
The attorneys general who have signed on are dropping from the main legal battle but are still free to write briefs to tell courts not to allow the protections for people who do not file for bankruptcy themselves.
Connecticut Attorney General William Tong has repeatedly said he has felt a “special obligation to be aggressive” in the case because Purdue is headquartered in the state. He expressed some disappointment Thursday with the final settlement, even though he said it was 40% more than the previous one.
“I wanted more. I still want more. But I took it as far as I could take it,” he said during a news conference. “If we were to continue, we would do it alone and that is untenable.”
The new settlement requires approval from U.S Bankruptcy Judge Robert Drain. Appeals related to the previous version of the plan could continue moving through the court system."
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