|
 All but a handful of states nationwide now support Purdue's
bankruptcy plan, with the latest agreement emerging after weeks of
mediation.
The deal, outlined in bankruptcy court papers filed late on
Wednesday, was reached after Sackler family members agreed to
contribute another $50 million toward a proposed litigation
settlement and to release tens of millions of additional internal
documents for public inspection.
Another $175 million would come from relinquishing control of family
charitable institutions. The Sackler family members have also agreed
to a prohibition with regard to naming rights associated with
charitable contributions until litigation settlement funds are fully
paid, the documents said.
In all, the Sackler contributions toward Purdue's bankruptcy-exit
plan now total roughly $4.5 billion.
The plan aims to resolve some 3,000 lawsuits brought by U.S.
communities alleging Purdue and its family owners contributed to an
opioid crisis that has claimed the lives of roughly 500,000 people
since 1999, according to the U.S. Centers for Disease Control and
Prevention.
The Stamford, Connecticut-based company and family members have
denied the allegations in the litigation.
Purdue said that the latest agreement built on support from other
creditors in the company's bankruptcy proceedings and that it hoped
to reach additional consensus on its plan to move billions of
dollars of value into trusts for addressing the U.S. opioid crisis.
Sackler family members called the deal an "important step toward
providing substantial resources for people and communities in need."
The agreement, supported by longstanding holdouts including
Massachusetts and New York, sets the stage for Purdue to gain court
approval in coming weeks for its bankruptcy plan, which the company
values at more than $10 billion. That value is contingent in part on
future donations of overdose reversal and addiction treatment
medications the company has under development.
The plan would dissolve the company and shift assets to trusts run
on behalf of plaintiffs that alleged the company and its owners
aggressively marketed the painkiller OxyContin while playing down
its abuse and overdose risks.
[to top of second column] |
 "While I know this resolution
does not bring back loved ones or undo the evil
of what the Sacklers did, forcing them to turn
over their secrets by providing all the
documents, forcing them to repay billions,
forcing the Sacklers out of the opioid business,
and shutting down Purdue will help stop anything
like this from ever happening again,"
Massachusetts Attorney General Maura Healey, the
first attorney general to sue Sackler family
members, said in a statement.
If approved by the court, the bankruptcy plan
would include legal releases shielding the
Sacklers from future litigation. A bankruptcy
judge halted lawsuits against both the company
and the Sacklers after Purdue filed for Chapter
11 court protection in 2019.
"It is upsetting that the Sackler family never
declared bankruptcy yet were still granted all
the same protections of bankruptcy as their
company," New York Attorney General Letitia
James said during a news conference with Healey
and Minnesota Attorney General Keith Ellison on
Thursday.
"There is no perfect solution here," James
added. "But we can't let perfect be the enemy of
the good. This deal gets one of the nation's
most harmful drug dealers out of the opioid
business."
Healey, who said she spoke to opioid victims
earlier on Thursday, urged reform in aspects of
the U.S. legal system that allowed the Sacklers
to obtain relief from a federal bankruptcy
court. But she welcomed the additional
deposition transcripts, emails and other
evidence that will eventually "be online
forever, searchable and free to the public."
Purdue in November separately pleaded guilty to
three felonies arising from its marketing of
prescription opioid painkillers, part of a
separate settlement eclipsing $8 billion to
resolve U.S. Justice Department criminal and
civil investigations.
Sackler family members have not been criminally
charged. They previously agreed to pay $225
million to resolve separate civil allegations
with the Justice Department. The family members
have denied those allegations.
 (Reporting by Mike Spector; Editing by Howard
Goller)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content |
