Judge plans to approve opioid settlement involving Purdue Pharma and the Sackler family.
NEW YORK — A federal bankruptcy court has moved to approve Purdue Pharma’s comprehensive settlement deal, potentially resolving thousands of lawsuits associated with the devastating impact of the opioid crisis. This agreement, which is overseen by U.S. Bankruptcy Judge Sean Lane, mandates that the Sackler family, the owners of Purdue, contribute up to billion over a span of 15 years. This new settlement replaces a previously rejected agreement by the U.S. Supreme Court, which deemed it unsatisfactory due to the level of immunity it granted to the Sacklers in relation to future lawsuits. Judge Lane is set to articulate the rationale behind his decision during a forthcoming hearing.
This proposed settlement marks one of the largest in a series of legal agreements reached with various pharmaceutical companies, wholesalers, and pharmacies over their involvement in the opioid epidemic, which has been implicated in approximately 900,000 fatalities across the United States since 1999. Legal experts have described the case as one of the most complex bankruptcies in U.S. history. Since Purdue filed for bankruptcy six years ago in light of mounting lawsuits, legal counsel representing various stakeholders—including states, municipalities, tribal nations, and those affected by addiction—has largely expressed support for the bankruptcy plan.
Purdue’s representative highlighted the limitations of resources available for compensation, emphasizing that while greater monetary relief is desirable, the current plan represents a lawful and strategically beneficial course of action to facilitate timely assistance to the most affected individuals.
In comparison to previous litigation phases, this instance saw significantly less public dissent, with only 218 out of more than 54,000 personal injury victims opposed to the settlement plan. Moreover, there was a notable absence of protests surrounding the courthouse during the hearings.
The latest settlement structure enables those individuals not included in the agreement to pursue legal action against the Sacklers. Even though family members have a substantial collective net worth, much of their wealth is retained in offshore trusts, complicating access through potential lawsuits.
The proposed plan stipulates that the Sackler family relinquish ownership of Purdue, which will be rebranded as Knoa Pharma, and ensure that all future profits are directed towards combating the opioid crisis. Additionally, the family would not have financial interests in any opioid-related ventures globally, nor would their names be affixed to any institutions in exchange for charitable donations. Notably, Purdue Pharma is set to unveil significant internal documents that could shed light on its prior operations.
A noteworthy aspect of the settlement is the allocation of approximately 0 million to direct financial support for individuals harmed by Purdue’s opioids, with more than 0 million specifically designated for children suffering from withdrawal symptoms at birth. The breakdown suggests individuals with longer prescribed periods could receive around ,000 each, while those with shorter prescriptions might access ,000 after legal fees.
Although feedback from affected individuals has emphasized the inadequacy of compensation, particularly for those grappling with substance use disorder, the settlement is perceived as a crucial step towards addressing the extensive repercussions of the opioid crisis. Most of the settlement funds are earmarked for state and local governments, supporting efforts to mitigate the opioid epidemic’s lingering effects, a concern that remains urgent as overdose deaths remain a pressing public health issue.
As this settlement moves forward, it signifies not only a resolution for Purdue Pharma’s complex legal standing but also a pivotal moment for affected communities seeking justice and rehabilitation in light of the widespread crisis.
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