Opioid crisis settled? American judge gives the Sackler family IMMUNITY in a bankruptcy agreement of 4.5 billion. Dollar for OxyContin manufacturer Purdue Pharma
Purdue Pharma, the maker of the powerful opioid OxyContin, is dissolving after a federal judge proved a $ 4.5 billion settlement agreement with the company’s owners, which will be granted immunity from future lawsuits in exchange.
Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, New York, approved the settlement on Wednesday, forcing the Sackler family - who own Purdue - to pay more than $ 4 billion and dissolve the company after a stream of lawsuits involving OxyContin and its role in America’s opioid crisis.
“This is a bitter result," Drain said of the deal that released Sacklers from future liability in opioid-related civil cases. The judge noted that Purdue’s products had contributed to one “Massive public health crisis” it has led to hundreds of thousands of overdose deaths and a wave of addiction and expressed frustration that large amounts of Sackler’s family fortune are hidden in offshore accounts.
I believe that at least some of the Sackler parties are responsible for them [OxyContin] claims … I wish the plan had given more, but I do not want to jeopardize what the plan provides.
The deal comes after two years of closed negotiations that began after Purdue filed for bankruptcy restructuring in 2019, when it faced about 2,900 lawsuits, of which more than 600 named members of the Sackler family, according to.
Wednesday’s settlement will close the cases that had been brought by governments, hospitals and individuals claiming harm caused by Purdue’s opioid products. The $ 4.5 billion will be paid in installments over a period of nine years and will largely go to fund addiction treatment centers around the country.
Judge Drain today took 6.5 hours to try to justify his evidence for the Purdue bankruptcy plan, which includes disclaimers for Sacklers. Even though it was expected, it was still terribly depressing, like a blow to the stomach. Can only imagine what it’s like for the victims pic.twitter.com/DF4N9UpgVV
- Gerald Posner (@geraldposner) September 2, 2021
Although the agreement does not prohibit criminal prosecution for the family, no government or individual has to date attempted to prosecute criminal charges against Sacklers, as such cases are more difficult to prove in court. Purdue himself, though pleaded guilty to criminal charges last year in a fraud case linked to its opioid sale.
This Purdue opioid “solution” is garbage. It pays the absolute minimum to the families of the victims and lets the Sacklers walk away from the company with almost all their money and general immunity. https://t.co/m945iPVNWu
- Matthew Chman (@fawfulfan) September 1, 2021
The U.S. Department of Justice along with attorneys in nine states and Washington, DC firmly opposed the settlement plan, while the DOJ in recent weeks has filed a series of briefs urging Drain to reject the agreement. “Proper litigation requires that persons with litigation have a reasonable opportunity to be heard," DOJ lawyer Paul Schwartzberg argued during the trial.
“The sacklers, who admit nothing wrong and who at their own expense earned more than $ 10 billion on opioid sales, will remain one of the richest families in the world …” When the wealthy and the guilty use the law to avoid liability , the system is broken. This is not justice. https://t.co/y8GrXhp1DD
- Katherine Clark (@RepKClark) September 1, 2021
Opponents also insisted that the $ 4.5 billion settlement amounted to a slap on the wrist for the wealthy Sacklers, who reportedly raised about $ 10 billion from Purdue between 2008 and 2017. A congressional committee examined the family earlier this year, estimated it had a total value of about $ 11 billion.
Several states have already signaled plans to clarify the decision, including Washington State Attorney Bob Ferguson, who blew up the settlement as “Moral and legal bankruptcy” argues that it “Enables Sacklers to walk away as billionaires with a lifetime legal shield."
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