Last week, a federal bankruptcy judge tentatively approved a $10 billion plan submitted by OxyContin manufacturer Purdue Pharma. The plan will resolve lawsuits related to the company’s role in the opioid crisis — an epidemic that has killed 500,000 Americans during the last 20 years. The settlement was reached with both individual victims and thousands of state and local governments.
Details of the $10 Billion Plan for Purdue Pharma
U.S. Bankruptcy Judge Robert Drain noted that his approval of the plan is contingent upon two technical changes. While he does not have “fondness for the Sacklers (owners of Purdue Pharma) or sympathy for them,” collecting money from them through litigation would be challenging.
Under the new terms, the Sackler family will release ownership of the company and contribute $4.5 billion to the plan but will be absolved from any future opioid lawsuits. They were not, however, given immunity from criminal charges, although there is no reason to believe they will face any. Additionally, a compensation fund will pay sufferers of drug addiction between $3,500 and $48,000 each.
Meanwhile, Purdue Pharma will be reorganized into a new company. The board will be determined by public officials, and the company will contribute its profits to efforts to prevent and treat opioid addiction.
The Opioid Epidemic
It’s been nearly two years since the drug manufacturer filed for bankruptcy after over 3,000 lawsuits were filed against them. These cases accuse the company of fueling the opioid epidemic through aggressive marketing of the addictive prescription painkiller.
For more information about the opioid crisis and settlement, contact us today.
Additional Reading:
Tentative Opioid Settlement For $26 Billion Focuses on Treatment, Prevention, and Education
Johnson & Johnson Agrees to End Opioid Business With $230 Million Settlement
Tracy Everhart
Tracy Everhart is the Editor for Drug Law Journal. A highly-trained and certified medical professional, Tracy is also an accomplished medical writer. After spending years on the front lines of the medical profession, Tracy now devotes her expertise and skills to researching and reporting on new drugs and devices that enter the market, as well as their side-effects and the real-life stories involved. Prior to joining Drug Law Journal, Tracy wrote for benchmark online healthcare resources focused on families and, in particular, women’s health issues. Tracy holds post-graduate degrees from both the American College of Healthcare Sciences and the Yale School of Nursing. She is also a graduate of both Hampshire College, where she studied microbiology and the University of South Carolina school of nursing.