OxyContin manufacturer Purdue gets more state support for settlement
After 15 more states in the United States stopped opposing the $4.3 billion settlement agreement aimed at resolving litigation related to the opioid crisis, drugmaker Purdue Pharmaceuticals is one step closer to getting rid of bankruptcy protection.
Purdue University filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Law OxyContin Manufacturers have been hit by thousands of lawsuits from various states, towns and cities in the United States.The claimant is seeking funds to solve the devastating problem The opioid crisis In the past two decades, this has caused nearly 500,000 deaths in the United States.
Many states and territories in the United States have Already signed A proposed financial settlement was reached with Purdue University and some members of the Sackler family that owns it. But others objected, believing that more money is needed.
In order to gain support from these states and clear the way for exit from bankruptcy, members of the Sackler family, which owns Purdue Pharma, increased the amount of cash they used for potential bankruptcy settlements to more than $4.3 billion.
According to a document submitted to the bankruptcy court late Wednesday, 15 states, including New York, Massachusetts, and Pennsylvania, have reached agreement in principle with Purdue University after court-supervised mediation. However, several adherents such as California and Maine still exist.
Massachusetts Attorney General Maura Healey called the settlement clause “unprecedented in history.” The Sackler family members who own Purdue University will pay more than $4.3 billion in nine years. According to documents submitted by the U.S. court, control of the two Sackler family charities-at least $175 million required to hold-will be handed over to the National Opioid Reduction Trust Fund to fund programs aimed at mitigating the impact of the crisis .
The agreement also prohibits some members of the Sackler family who owns Purdue University from having naming rights related to their charitable donations until all the money is paid and they “withdraw from all companies engaged in the manufacture or sale of opioids in the world,” court documents Say.
Tens of millions of documents, including communications between the company and its lawyers, will also be made public.
Healy said Purdue will be sold or closed by 2024, adding: “We will end their legacy.” New York State Attorney General Letitia James said on Thursday that despite the agreement “Not perfect.” .. It liberated one of America’s most harmful drug dealers from the opioid business once and for all.”
Purdue University said: “We will continue to work hard to reach a greater consensus on our restructuring plan, which will transfer billions of dollars in value to the trust fund, benefit the American people, and deliver much-needed drugs and resources directly to Communities and individuals across the country. People affected by the opioid crisis.”
The agreement requires the approval of the judge overseeing Purdue’s bankruptcy.
Bankruptcy is one of the most high-profile cases in the opioid crisis. Thousands of U.S. pharmaceutical companies and distributors have been sued. These companies and distributors have been accused of mismarketing highly addictive painkillers and causing a crisis that has swept the United States. Opioid overdose is the leading cause of drug deaths in the United States.
Other companies are currently being tried in New York and California.
Purdue Previously agreed The value of the criminal and civil settlement agreement with the U.S. Department of Justice may exceed $8.3 billion.