Purdue Pharma Settles Multi-Billion Dollar Bankruptcy Case
This month, a US bankruptcy judge approved a settlement that removes the Sackler family from ownership of Purdue Pharma (maker of OxyContin) and devotes billions of dollars to the deadly opioid crisis.
Judge Robert Drain confirmed the complex bankruptcy and settlement plan, ending two years of intense, closed-door mediation sessions between the Sackler Family, Purdue Pharma, and thousands of plaintiffs. The pharmaceutical company faced more than 3,000 lawsuits from state government, local government, Native American tribes, and others who accused Purdue Pharma of causing the opioid epidemic. Purdue Pharma filed for bankruptcy in 2019 under the weight of those lawsuits.
Under the settlement, the Sackler family will have to leave the opioid business altogether and contribute $4.5B to a victim settlement fund and to the fight against the opioid crisis. In return, the Sacklers will be shielded from any future lawsuits over opioids such as OxyContin. (They were not given immunity against any future criminal charges). The company Purdue Pharma will be reorganized into a charity-oriented company whose publically appointed board members will funnel profits into drug prevention and addiction treatment programs.
While several state and local governments support the settlement, nine states (including the attorneys general of Connecticut, Washington DC, and Washington state) announced plans to file an appeal to the judge’s ruling. Activists and surviving family members protested the court’s decision, claiming the Sacklers were trying to evade justice and buy their immunity.
According to the CDC, more than 500,000 people living in the US have died from drug overdoses involving opioids. Millions more suffer from an addiction to opioid use.
Have Questions? Contact Our Bankruptcy Team
If you have questions about the Sackler/Purdue Pharma settlement or need help with your own bankruptcy case, please reach out to Burrow and Associates at (678) 323-2394 or via our website. We offer free consultations and have convenient bankruptcy office locations in Athens, Conyers, Duluth, Gainesville, Kennesaw, and Morrow. We’re currently running a promotion and will file your bankruptcy case for NO MONEY DOWN.