Purdue Pharma Inches Closer to Settling Thousands of Lawsuits
While critics argue that the deal will protect the Sackler family from future lawsuits over opioids, most of those with claims are willing to accept it.
Landwebs
Nearly two years after seeking bankruptcy protection, Purdue Pharma is scheduled to appear before a U.S. Bankruptcy Court judge to ask for approval of its plan to reorganize into a new entity no longer controlled by members of the wealthy Sackler family, and with profits dedicated to abating the opioid crisis, reports the Associated Press. Opponents fault the deal for giving members of the Sackler family protection from lawsuits over opioids even though they have not personally filed for bankruptcy or admitted wrongdoing, but most of the groups with claims against Purdue are on board with the settlement plan.
Ed Neiger, a lawyer representing individual victims and their families, is planning to tell a bankruptcy judge that it’s better to approve the settlement plan than to have years more of court battles with Purdue and the Sacklers. Those with claims against Purdue were given a vote on the settlement, and over 90 percent of most groups of creditors — including local governments and individual victims — said they approved. Judge Drain is not bound by the results. Sackler family members have been adamant that if they don’t receive protections from lawsuits, they would not participate in the settlement and would instead mount a vigorous defense. Purdue Pharma says its plan could be worth $10 billion over time. Profits and money already in the company’s coffers would be used to abate the opioid crisis, funding treatment programs and education campaigns.
