NEW YORK (AP) — Lawyers representing OxyContin maker Purdue Pharma, alongside stakeholders like the Sackler family, cities, states, counties, and individuals grappling with addiction, are poised to present a nearly unanimous request to a bankruptcy court: approve a settlement plan addressing thousands of opioid lawsuits.
If U.S. Bankruptcy Judge Sean Lane agrees, it will potentially conclude a lengthy legal journey concerning Purdue's involvement in an opioid crisis linked to approximately 900,000 deaths across the U.S. since 1999, exacerbated by heroin and illicit fentanyl use.
This week’s hearings, culminating in closing arguments on Friday, follow six years of bankruptcy proceedings after Purdue sought court protection amid claims exceeding trillions of dollars.
The Opposition is Much Quieter This Time Around
While past discussions about Purdue have been filled with emotional turmoil and competing interests, the present situation sees a more condensed discourse with significantly fewer individual objections. Of over 54,000 personal injury victims consulted, only 218 voted against the settlement. Many in the group opted not to cast their vote.
Generally, governmental stakeholders have been largely in agreement, though some voices sought to spotlight the need for direct reparations to victims rather than a broader settlement that includes governmental entities. A Florida woman emphasized the inadequacy of the proposed agreement, stating that justice demands accountability for the harm caused.
Key Aspects of the Deal
The settlement is on track to become one of the largest opioid-related agreements to date, with over $50 billion in prior settlements already established with other entities involved in the opioid crisis. The Sackler family has pledged to contribute up to $7 billion and surrender ownership of Purdue Pharma. Despite less visibility, family members, all said to be worth billions, have been effectively sidelined since 2018.
The restructuring plan also includes a name change for Purdue and appoints new overseers dedicated to channeling future profits towards combating the opioid crisis. Notably, certain Sackler family members would be prevented from holding roles that involve opioid sales internationally and would not be recognized for charitable contributions made in their names.
Among the settlement's financial aspects, approximately $850 million is allocated for individuals harmed by Purdue's opioid products. The agreement aims to assist 139,000 claimants, although many must provide proof of prescriptions to receive compensation.
Ultimately, the funds primarily target state and local governments, assisting their efforts to alleviate the repercussions of the epidemic, which has begun to see a decline in overdose rates in recent years.
