Purdue Pharma Files For Bankruptcy As Part Of Settlement To Avoid Thousands Of Opioid Lawsuits
Under the deal, Purdue would be restructured into an entity known as a public benefit trust, and profits from its production of OxyContin and other drugs would pay the plaintiffs’ claims. But the terms of the filing are expected to be hotly contested by the states that didn't agree to the terms of the settlement. Meanwhile, the New York attorney general’s office said on Friday that it has tracked about $1 billion in wire transfers by the Sacklers, which suggests the family is trying to shield its personal wealth.
Reuters:
OxyContin Maker Purdue Pharma Files For Bankruptcy Protection
OxyContin maker Purdue Pharma LP filed for bankruptcy protection Sunday night, succumbing to pressure from more than 2,600 lawsuits alleging the company helped fuel the deadly U.S. opioid epidemic. Purdue's board met Sunday evening to approve the long-expected bankruptcy filing, which the company is pursuing to restructure under terms of a proposal to settle the widespread litigation. (Spector, 9/16)
The Associated Press:
After Bankruptcy Filing, Purdue Pharma May Not Be Off Hook
"Like families across America, we have deep compassion for the victims of the opioid crisis," Sackler family members said in the statement, which called the settlement plan a "historic step towards providing critical resources that address a tragic public health situation." But the filing may not get either the drugmaker or the Sacklers off the legal hook. (Mulvihill, 9/16)
The New York Times:
Purdue Pharma Files For Chapter 11 Bankruptcy
The terms of the filing, which include a proposed resolution of most of those cases, are expected to be fiercely contested by a group of 26 states that have refused to settle with Purdue and are intent on pursuing the company’s owners, the Sacklers, considered one of the wealthiest families in the United States. A showdown in bankruptcy court in White Plains could come as early as this week. Restructuring the company through bankruptcy was at the heart of a tentative settlement agreement reached last week between the company and thousands of cities and counties that have sued it in federal court for its role in the opioid epidemic. Twenty-four states and five United States territories have also accepted the agreement. (Hoffman and Walsh, 9/15)
The Washington Post:
Purdue Pharma, Maker Of OxyContin, Files For Bankruptcy
The bankruptcy also will raise the stakes on legal sparring over how much of the personal fortunes of the billionaire Sackler family, which owns Purdue, will be available to compensate plaintiffs. Multiple states that have rejected the proposed settlement have accused the family of improperly stripping billions of dollars out of the company’s coffers in the past decade to protect the cash from expected court judgments. “The controversial piece is going to be about how much the Sacklers need to kick in for the deal to work,’’ said Adam J. Levitin, a professor specializing in bankruptcy at Georgetown Law. (Rowland, 9/15)
The Wall Street Journal:
OxyContin Maker Purdue Pharma Files For Bankruptcy Protection
The company and the Sacklers have broadly denied the accusations and said they are committed to helping curb opioid addiction. “My objective here is to put this company on a course to be a major positive contributor to our society,” said Steve Miller, a longtime restructuring specialist who joined Purdue’s board as chairman last year. Other drugmakers and distributors are also battling opioid lawsuits, including Johnson & Johnson , McKesson Corp. and Cardinal Health Inc. (Randazzo and Hopkins, 9/16)
Stat:
Purdue Pharma, Maker Of OxyContin And Other Drugs, Files For Bankruptcy
“This unique framework for a comprehensive resolution will dedicate all of the assets and resources of Purdue for the benefit of the American public,” Steve Miller, chairman of the company’s board of directors, said in a statement. “This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis.” (Joseph, 9/16)
Bloomberg:
Purdue Pharma Files For Bankruptcy To Wipe Out OxyContin Lawsuits
The court that will oversee Purdue’s case has the thorny task of trying to figure out how to apportion monies generated by the plan among thousands of states, cities and counties seeking reimbursement for tax dollars spent on the crisis. That allocation “will be one of the main tasks in the case,” Miller said Sunday. Lawyers for cities and counties have created computer programs that calculate how much a municipality could get under the deal based on the amount of opioids circulated in the area. (Feeley and Church, 9/15)
NPR:
Purdue Pharma, Accused Of Fueling Opioid Crisis, Files For Bankruptcy
The drug maker said the value of the settlement is around $10 billion, but 26 states opposed to the deal have contested that estimate, vowing to take the Sackler family to state courts in an attempt to tap into the family's fortune. (Allyn, 9/16)
CNN:
Purdue Pharma Files For Bankruptcy Following Proposed Agreement To Settle Opioid Lawsuits
Pennsylvania Attorney General Josh Shapiro said Wednesday that the case was "far from over." "This apparent settlement is a slap in the face to everyone who has had to bury a loved one due to this family's destruction and greed. It allows the Sackler family to walk away billionaires and admit no wrongdoing," Shapiro said in a statement obtained by CNN. (Joseph, 9/16)
CNBC:
OxyContin Maker Purdue Pharma Files For Bankruptcy Protection
In March, Purdue and the Sacklers agreed to pay $270 million to Oklahoma to settle a lawsuit accusing the drugmaker of ruthlessly marketing and misleading the public about OxyContin. As a part of that agreement, Purdue agreed to contribute $102.5 million to fund the creation of a National Center for Addiction Studies at Oklahoma State University. (Lovelace, 9/15)
The New York Times:
New York Uncovers $1 Billion In Sackler Family Wire Transfers
The New York attorney general’s office said on Friday that it had tracked about $1 billion in wire transfers by the Sackler family, including through Swiss bank accounts, suggesting that the family tried to shield wealth as it faced a raft of litigation over its role in the opioid crisis. Earlier this week, thousands of municipal governments and nearly two dozen states tentatively reached a settlement with the Sackler family and the company it owns, Purdue Pharma, maker of OxyContin. It was unclear if the new disclosure would change the thinking of any of the parties that agreed to the settlement. (Hakim, 9/13)
NPR:
Sacklers Accused Of Shielding $1 Billion As Hedge Against Litigation
"While the Sacklers continue to lowball victims and skirt a responsible settlement, we refuse to allow the family to misuse the courts in an effort to shield their financial misconduct," James said in a statement. "Records from one financial institution alone have shown approximately $1 billion in wire transfers between the Sacklers, entities they control, and different financial institutions, including those that have funneled funds into Swiss bank accounts," she added. (Gonzales, 9/13)
