Opioid Lawsuit: Judge Permits Purdue To Pay States' Costs

Opioid Lawsuit: Judge Permits Purdue To Pay States' Costs

Introduction

On Tuesday, Bankruptcy Judge Robert Drain approved OxyContin maker Purdue Pharma's request to reimburse millions of dollars in legal fees for states, along with a condition that the manufacturer will help victims of the opioid crisis.

During the hearing, Purdue told the judge that payment to seven firms that work on behalf of states and local governments would help in structuring and resolving the Chapter 11 case. The judge said that he wanted reimbursement for four law firms, a financial adviser, and two economic consultants, following which the parties should release emergency funds for victims. 

Last month the manufacturers proposed a $200 million emergency fund to be spent on addiction treatment while they resolve the entire bankruptcy case, which will take months.

Purdue filed for bankruptcy on September 15, as a part of the settlement proposal with 24 states, which includes an amount valued between $10 billion to $12 billion. As a part of the proposal, the Sacklers have also agreed to contribute around $3 billion for the settlement from the sale of an overseas drug company it owns and surrender the control of their firm.