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Purdue Pharma’s exit plans are gaining momentum with OK from more states | Domestic and Global

Purdue Pharma, an OxyContin maker, plans to reorganize into a new entity that will help fight the opioid epidemic in the United States, as 15 states that previously opposed the new business model now support it. I got a boost.

Agreements from several state prosecutors, including those most actively opposed to Purdue University’s original settlement, were disclosed late Wednesday night in a document filed at the US Bankruptcy Court in White Plains, New York. Exit plan.

The new settlement requires Purdue University to publish tens of millions of internal documents, a step that several Attorney Generals, including Massachusetts and New York, have demanded as a way to make the company accountable. ..

The prosecutors of both states were among those who agreed to the new plan and joined about half of the states that had previously approved it.

At a joint online press conference on Thursday, some of the signing lawyers’ presidents said their states were lined up to get more money faster to fund drug treatment and prevention.

However, they continued to express anger at the company, especially the members of the wealthy Sackler family who owned the company and did not accept the accusations. “No one is happy with the settlement,” said New York Attorney General Letitia James. “Can Suckler do more? Yes, they can do better, but it should start with an apology first.”

North Carolina Attorney General Josh Stein said Thursday that the deal included about $ 1.5 billion more than it originally was.

In a statement, members of the Sackler family called more state support “an important step in providing substantial resources to people in need and communities.”

Still, nine states and the District of Columbia did not sign on. “This settlement plan allows Suckler to leave as a millionaire with a lifelong legal shield,” said Bob Ferguson, Washington’s Attorney General, one of the holdouts.

The tenth Attorney General, Patrick Morrisey of West Virginia, opposes the deal for another reason. When money is allocated, his state will run short. He repeated that position on Thursday.

Purdue said in a statement that it would try to build a “bigger consensus” on the plan.

Purdue sought bankruptcy protection in 2019 as a way to resolve approximately 3,000 proceedings faced by state, local and other organizations. They argued that the company’s continued marketing of powerful prescription painkillers contributed to the crisis that killed nearly 500,000 people in the United States over the last two decades.

The court filing is from a mediator appointed by the Bankruptcy Court, indicating that members of the Suckler family have agreed to increase their cash contributions to the settlement by $ 50 million. They will also allow the $ 175 million held at the Sackler charity to go towards mitigating the crisis.

Overall, Suckler’s family has donated $ 4.5 billion in cash and assets to the Charity Fund for a settlement. They do not admit cheating and have not been found in court by their families.

The agreement also prohibits the Suckler family from obtaining naming rights related to charitable donations until they have paid all the money payable under the settlement and waived all business interests related to the manufacture or sale of opioids. I will.

Maura Healey, Massachusetts Attorney General, who was the first Attorney General to sue members of the Sackler family, praised the modified deal in a statement earlier Thursday. She points out how to waive the $ 90 million state receives and the lawyer / client privilege to release hundreds of thousands of confidential communications with lawyers about tactics to sell opioids and other matters. Did.

“I know that this resolution will not bring back loved ones or undo the evil of what Suckler did, but by providing all the documents, we force them to turn over the secrets. And forcing them to repay billions of dollars and kicking Suckler out of the opioid business, shutting down Purdue helps prevent this from happening again, “Healey said. ..

Purdue’s plans also require members of the Sackler family to relinquish ownership of a Connecticut-based company. This includes the value of overdose reversals that the company plans to produce.

The money from the contract is to go with the individual victims and their families to a government agency that has agreed to use it to deal with the opioid crisis.

Most groups representing various creditors, including victims and local governments, generously supported the plan. However, previous state prosecutors have been largely divided, with about half supporting the plan and half fighting it.

The Attorney General, who opposed the plan, said he didn’t like the idea that he had to rely on the benefits of continued sales of prescription painkillers to combat the opioid epidemic. The revised transaction allows state and local governments to opt out of receiving these funds. The Attorney General also said the deal was not sufficient to hold Suckler’s family accountable or to prepare official documents to help explain the company’s role in the crisis.

“Sackler hasn’t offered to pay close to what they should have done for the harm and devastation caused to their families and communities in the country,” Healy, Massachusetts, told The Associated Press last month. Told.

Additional state support will be provided within two weeks of the deadline for official opposition to Purdue University’s restructuring plan, and approximately one month before the hearing on whether to accept it.

With only nine states and the District of Columbia opposed to the plan, federal bankruptcy judges are more likely to confirm the deal.

Activists also hated it, and two Democrats urged the US Department of Justice to oppose it. Carolyn Maloney of New York and Mark DeSornia of California said in a statement Thursday that Sackler’s family “getting impunity through the bankruptcy of Purdue University would be a tragic false charge.” The Justice Ministry is not weighted.

Last year, the company pleaded guilty to a federal criminal accusation and agreed to pay the federal government $ 225 million.

In another civil settlement announced at the same time, Suckler’s family agreed to pay the federal government $ 225 million without admitting cheating.

The opioid crisis includes overdose, including prescription drugs as well as illegal drugs such as heroin and fentanyl. Purdue’s bankruptcy case is the hottest of the complex national proceedings against pharmaceuticals, distributors and pharmacies.

Negotiations continue to resolve many claims, with trials against other companies in the industry taking place in California, New York, and West Virginia.

Purdue Pharma’s exit plans are gaining momentum with OK from more states | Domestic and Global

Source link Purdue Pharma’s exit plans are gaining momentum with OK from more states | Domestic and Global

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