$6B Opioid Deal Between State Attorneys & Purdue

$6B Opioid Deal Between State Attorneys & Purdue

Introduction

A group of attorneys has struck a $6 billion deal with the Sackler family, who is the owners of Purdue Pharma LP, over widespread litigation fueling the opioid epidemic.

The attorneys representing eight states and the District of Columbia secured the $4.3 billion in cash settlement after mediation for weeks with the Sackler family.

As per the agreement, the family has agreed to pay at least $5.5 billion in cash. The fund would be used to deal with the opioid crisis in the United States (U.S.), which has claimed nearly 500,000 lives over two decades because of overdose.

The settlement amount could increase as soon as the family sells additional assets. The family exhibited regret over OxyContin being an unexpected part of the opioid crisis. The Saklers even said that they acted lawfully, but the settlement is the best way to resolve the public health crisis.

Purdue has appealed to U.S. Bankruptcy Judge Robert Drain to approve the deal, which will protect the family from civil lawsuits. The spokesperson for Purdue said that the new settlement would provide additional funding that would be helpful to conduct opioid awareness programs to cure the victims and prevent further addiction among the people.

Once the bankruptcy plan comes into effect, Purdue Pharma will emerge as a new company, Knoa Pharma LLC which would be owned by the National Opioid Abatement Trust.

Purdue filed for bankruptcy in 2019 as it faces thousands of opioid lawsuits against it with allegations that the company used deceptive marketing techniques to promote the sale of its highly addictive pain medicine.

As per the U.S. Centers for Disease Control and Prevention, the death rate due to opioid overdose soared during the COVID-19 pandemic.