Purdue Pharma Files New Bankruptcy Plan to Settle Opioid Litigation for $7.4 Billion
Summary: Purdue Pharma has filed a new bankruptcy plan to resolve opioid lawsuits, following a setback in the US Supreme Court last year. The plan aims to allocate at least $7.4 billion to settle thousands of lawsuits alleging that the company’s pain medication, OxyContin, contributed to the US opioid addiction crisis.
Introduction:
In a significant development, Purdue Pharma, the company behind the pain medication OxyContin, has filed a new bankruptcy plan to resolve thousands of lawsuits alleging that its products contributed to the US opioid addiction crisis. The plan, worth at least $7.4 billion, comes after a setback in the US Supreme Court last year, which rejected a previous attempt to resolve the lawsuits through a bankruptcy settlement.
Key Highlights:
• The new plan aims to allocate at least $7.4 billion to settle thousands of lawsuits alleging that OxyContin caused a widespread addiction crisis in the US.
• The payments will be made to states, local governments, and individuals harmed by the crisis, with a focus on addressing its harms.
• Purdue will pay $900 million of its own funds and make non-monetary concessions, including transforming into a public benefit company focused on producing medicine for treating opioid use disorder and reversing overdoses.
• The Sackler family, owners of Purdue, will contribute between $6.5 billion and $7 billion to the settlement, an increase of $1 billion over the rejected deal last year.
• The plan provides around $850 million for individuals harmed by the opioid crisis, including people who were prescribed OxyContin and became addicted, and babies born with withdrawal symptoms after being exposed to opioid drugs in the womb.
Conclusion:
The new bankruptcy plan marks a major step towards resolving the complex and highly contentious opioid litigation. The plan’s focus on allocating a significant sum to address the harms caused by the crisis is a crucial step in the recovery process. As the company moves forward, it is essential to ensure that the payments are used effectively to support victims and communities affected by the opioid addiction crisis.
Keywords: Purdue Pharma, Opioid Litigation, Bankruptcy Plan, OxyContin, Sackler Family, Opioid Crisis, Addiction, Prescription Medication, Public Health
