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$10-12 Billion Offered By Purdue Pharma To Settle Opioid Claims


08/28/2019


$10-12 Billion Offered By Purdue Pharma To Settle Opioid Claims
According to reports, Purdue Pharma, the manufacturer of the OxyContin painkiller, and owned by the Sackler family, has made an offer of between $10 billion to $12 billion against settlement of more than 2,000 lawsuits against the company in the opioid scandal in the United States.
 
The reports, based on source information, said that the offer was made by the company during confidential conversations between Purdue's lawyers at a meeting in Cleveland last Tuesday.
 
According to the legal suits filed against the company, it is alleged that the company and its owners, the Sackler family are responsible for initiating and sustaining the opioid crisis. The cases have been filed by states, cities and counties and a number of the cases have been combined together to form one huge case.
 
According to the reports in the media, the meeting that took place in Cleveland was attended by attorney generals form at least 10 state and lawyers of the plaintiffs. The Sackler family was represented by David Sackler, a board member of the company and has recently been selected to be the de facto spokesperson for the Sackler family.
 
The allegations against Purdue and the Sackler family include that the sale practices of the company were misguided the users and they were partially responsible for triggering the opioid crisis in the US. According to records from the Centers for Disease Control and Prevention, this between 1999 and 2017, this opioid epidemic had claimed more than 400,000 lives in the US. 
 
The Sackler family drained the company of money to enrich themselves after 2007, allege some of the lawsuits. .
 
“The Sackler family built a multibillion-dollar drug empire based on addiction,” New Jersey Attorney General Gurbir Grewal said in May. the first to name family members in her suit in January was the Massachusetts Attorney General Maura Healey.
 
All the charges have been denied by Purdue Pharma and the Sackler family.
 
"While Purdue Pharma is prepared to defend itself vigorously in the opioid litigation, the company has made clear that it sees little good coming from years of wasteful litigation and appeals," the company said in a statement to the media.
 
"The people and communities affected by the opioid crisis need help now. Purdue believes a constructive global resolution is the best path forward, and the company is actively working with the state attorneys general and other plaintiffs to achieve this outcome," the company added.
 
There were no comments from the Sackler family.
 
According to some media who claimed to have read according to the summary term sheet of te meeting in Cleveland, a plan for declaring Chapter 11 bankruptcy for the Purdue was presented by the company along with plans for restructuring of the company into a for-profit “public benefit trust”.
 
Reports suggested that the more than $4 billion in drugs that would be provided to cities, counties and states would be the value of the trust to plaintiffs as claimed by the Purdue lawyers in the meeting. Some of the drugs are used to rescue people from overdoses. A total Purdue settlement ranging from $7 billion to $8 billion would accumulate from the in-kind drugs along with the profits from the sale of drugs.
 
(Source:www.nbcnews.com)


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