New York — Lawyers representing OxyContin maker Purdue Pharma, the Sackler family branches that own it, cities, states, counties, Native American tribes, people struggling with addiction and others across the United States are expected to deliver a near-unanimous letter to a bankruptcy court judge on Friday: approving a plan to settle thousands of opioid-related lawsuits against the company.
If US Bankruptcy Judge Sean Lane adheres, it would close a long chapter – and perhaps the entire book – in a legal saga over efforts to hold the company accountable for its role in the opioid crisis linked to 900,000 deaths in the United States since 1999, including deaths from heroin and illicit fentanyl.
Closing arguments were expected on Friday on the third day of a hearing on the bankruptcy plan of the company, which filed for protection six years ago as it faced lawsuits with claims worth trillions of dollars.
The saga It was emotional And full of controversial arguments among many Groups that took Purdue to courtIt often reveals a potential mismatch between the pursuit of justice and the practical role of the bankruptcy court.
the The US Supreme Court rejected an earlier deal Because she said it was inappropriate for Sackler family members to receive immunity from opioid-related lawsuits. In the new arrangementEntities that did not participate in the settlement could sue. The family members are collectively worth billions, but much of their assets are held in trusts in offshore accounts that are difficult to access through lawsuits.
This time, relevant government groups reached a fuller consensus and there was mostly weak opposition from individuals. Among the more than 54,000 personal injury victims who voted on whether the plan should be accepted. Only 218 said no. A larger number of people who are part of this group did not vote.
A group of objectors spoke Thursday at the hearing, interrupting the judge at times. Some said only victims, not states and other government entities, should receive money in the settlement. Others wanted a judge to find members of the Sackler family criminally liable, something Lane said was outside the scope of bankruptcy court, but the settlement does not prevent plaintiffs from pursuing.
A Florida woman whose husband struggled with addiction after being given OxyContin after an accident told a court the deal wasn’t enough.
“The natural laws of karma indicate that Sackler and Purdue Pharma must pay for what they did,” Pamela Bartz Halashak said via video.
The torrent of lawsuits filed by government agencies against Purdue and other drugmakers, drug wholesalers and pharmacy chains began about a decade ago.
Most major ones have Already settled Totaling about $50 billion, most of it goes to… Fighting the opioid crisis.
The Bordeaux deal will be among the largest. Members of the Sackler family will be required to pay up to $7 billion and give up ownership of the company. None of them have been on its board or received payments since 2018. Unlike A A similar session four years agoNone of them were called to testify at this week’s hearing.
The company will have a name change and new supervisors that will dedicate future profits to fighting the opioid crisis.
There are also some non-financial provisions. Some members of the Sackler family will be required to give up involvement in companies that sell opioids in other countries.
Family members will also be prohibited from adding their names to institutions in exchange for charitable contributions. The name has already been removed From museums and universities.
Company documents are scheduled to be made public, including several documents normally subject to attorney-client privilege.
Unlike other major opioid settlements, individuals harmed by Purdue’s products will be in line to get some money as part of the settlement. About $850 million will be allocated to them, with more than $100 million of that going to help children born with opioid withdrawal.
About 139,000 people have active claims for the money. However, many of them have not shown proof that they were prescribed opioids from Purdue and will not get any. Lawyers expect that those who have had prescriptions for at least six months will receive about $16,000 each, and those who have had them briefly will receive about $8,000. Legal fees would reduce what people actually get.
A woman whose family member struggled with opioid addiction told court via video on Thursday that the settlement does not help people with substance use disorder.
“They tell me how you can sleep at night knowing that people are going to have so little money that they can’t do anything with it,” asked Lauren Ferrante of Staten Island, New York.
Most of the money will go to state and local governments for use in their efforts to mitigate the damage caused by the opioid epidemic. The number of overdose deaths has decreased In the past few years, experts believe the decline is due in part to the influence of settlement dollars.