by Tyler Durden
A federal bankruptcy judge has signed a settlement between OxyContin, manufacturer Purdue Pharma, and thousands of creditors and litigants involved in a series of lawsuits against the company over its role in developing and marketing OcyContin in ways that prosecutors say violated laws and intentionally exposed millions. to a highly addictive substance.
Under the settlement reached with creditors, including individual victims and thousands of state and local governments, the Sackler family will give up ownership of the company and contribute $4.5 billion, some of which will be used in the Victims Compensation Fund. In return, family members would be freed from liability for any future opioid-related lawsuits, allowing them to keep much of their family’s wealth, even if their money cow is now no longer under their control. In total, Purdue estimates the plan at $10 billion.
The new company will be reorganized under a board of directors chosen by public officials. Profits will go to government efforts to prevent and treat opioid addiction.
Judge Drin said Wednesday after speaking from the podium for more than six hours that he would approve the plan as long as two technical changes were made. Once that is done, he plans to enter the final standings on Thursday.
Opioids have killed nearly half a million Americans over the past decade, according to CDC data.
Source: The Wall Street Journal
One party to the settlement said the deal was “not what we promised.”
“It’s not what we promised or what we hoped for,” said Ryan Hampton, an author and activist who represented victims during bankruptcy. Hampton resigned from his position on the Victims Committee the day before the judge’s decision, in part because he believed that compensation for victims was inadequate, especially compared to the proportion of money allocated to cities, counties, states and other public bodies litigating. Bordeaux.
At least three parties led by Washington AJ Bob FergusonShe objected to the plan and challenged its approval. Ferguson said the settlement as it is allows Sackler to “off the hook”
“This order allows the Sakers to get rid of the problem by giving them permanent immunity from lawsuits in exchange for a fraction of the profits they’ve made from the opioid epidemic — and sends the message that billionaires operate by a different set of rules than anyone else,” she said.
Purdue’s chairman praised the settlement.
Purdue chairman Steve Miller praised the judge’s decision, saying it was “an outcome that is truly in the public interest.”
“Instead of years of value-destroying litigation, including between creditors, this plan ensures that billions of dollars are allocated to help people and communities affected by the opioid crisis,” he said in a statement.
Once in effect, the bankruptcy plan will allocate funds to cities, counties and other entities. Individuals, including those who have experienced addiction, families of people who died from overdoses and children who were exposed to opioids in utero and were born with neonatal abstinence syndrome, or NAS, are eligible for payments ranging from $3,500 to $48,000. Claims still have to be adjudicated, an effort that can be complicated by the fact that old medical records may not exist.