by Tyler Durden
Purdue Pharmaceuticals admitted last year that it knowingly conspired with doctors to over-prescribe OxyContin and other seriously addictive opioid pain relievers in order to boost profits.
As it scrambles to exit bankruptcy protection (which the company has relied upon only to avoid being financially devastated by thousands of lawsuits), Purdue and the Sackler family (who are now being personally targeted by some state prosecutors) offer a new $ 10 billion . The settlement plan would see the family’s contribution increase to $ 4.3 billion, roughly a third of the family’s wealth.
The new bid was $ 1.3 billion larger than the $ 3 billion figure that was included as part of the 2019 Initial Settlement Offer, which was rejected by the 24 AGs and Washington, DC.
Unfortunately for Bordeaux, their latest settlement is advancing the territory as opioid overdoses increase in the United States. New data released by the Centers for Disease Control (CDC) on Tuesday showed that overdose deaths reached a record high of more than 81,000 deaths during the 12-month period ending in May 2020. Thanks in part to COVID, and to synthetics. As powerful as fentanyl is flooding the market, the overall rate of population has never been higher nationwide.
The proposed settlement would also create a new company that would sell drugs to mitigate the impact of the pandemic, such as buprenorphine and naloxone, which treats opioid dependence.
The family’s latest offer, introduced in 2019, was rejected by 24 states and Washington, D.C.
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Native American states, cities, and tribes across the country are keen to have a portion of Sackler’s money to help offset the cost of the state’s resources for addicts and those struggling with a mental health crisis.
Notably, Sacklers’ latest bid excludes selling Mondi Pharma, which is a massive portion of Purdue’s business. In essence, the family hopes that taking more pain on themselves and, to a lesser degree, the company will appease prosecutors. In a statement, Purdue said it believed there was “broad and strong support” for the plan, including from some state prosecutors, as well as other government and private creditors.
If there is no settlement every now and then, the bankruptcy plan will be reviewed during a court hearing in August.
Source: Zero hedge