Purdue Pharma opioid settlement, bankruptcy deal to get U.S. judge approval
Global News
The deal overseen by a U.S. bankruptcy judge would require members of the Sackler family who own the company to contribute up to $7 billion and give up ownership.
A federal bankruptcy court judge on Friday said he will approve OxyContin-maker Purdue Pharma’s latest deal to settle thousands of lawsuits over the toll of opioids that includes some money for thousands of victims of the epidemic.
The deal overseen by U.S. Bankruptcy Judge Sean Lane would require members of the Sackler family who own the company to contribute up to $7 billion and give up ownership. The new agreement replaces one the U.S. Supreme Court rejected last year, finding it would have improperly protected members of the family against future lawsuits. The judge said he would explain his decision in a hearing on Tuesday.
The deal is among the largest in a series of opioid settlements brought by state and local governments against drugmakers, wholesalers and pharmacies that totaled about $50 billion. It could close a long chapter — and maybe the entire book — on a legal odyssey over efforts to hold the company to account for its role in an opioid crisis connected to 900,000 deaths in the U.S. since 1999, including deaths from heroin and illicit fentanyl.
Lawyers and judges involved have described it as one of the most complicated bankruptcies in U.S. history. Ultimately, attorneys representing Purdue, cities, states, counties, Native American tribes, people with addiction and others were nearly unanimous in urging the judge to approve the bankruptcy plan for Purdue, which filed for protection six years ago as it faced lawsuits with claims that grew to trillions of dollars.
Purdue lawyer Marshall Huebner told the judge that he wishes he could “conjure up $40 trillion or $100 trillion to compensate those who have suffered unfathomable loss.” But without that possibility, he said: “The plan is entirely lawful, does the greatest good for the greatest number in the shortest available timeframe.”
The saga has been emotional and full of contentious arguments between the many groups that took Purdue to court, often exposing a possible mismatch between the quest for justice and the practical role of bankruptcy court.
The U.S. Supreme Court rejected a previous deal because it said it was improper for Sackler family members to receive immunity from lawsuits over opioids. In the new arrangement, entities who don’t opt into the settlement can sue them. Family members are collectively worth billions, but much of their assets are held in trusts in offshore accounts that would be hard to access through lawsuits.
This time, the government groups involved have reached an even fuller consensus and there’s been mostly subdued opposition from individuals. Out of more than 54,000 personal injury victims who voted on whether the plan should be accepted. just 218 said no. A larger number of people who are part of that group didn’t vote.
