Sacklers' Opioid Deal Endangered Over Bankruptcy Protection

Sacklers' Opioid Deal Endangered Over Bankruptcy Protection

Introduction

On Wednesday 25, attorneys representing OxyContin-maker Purdue Pharma filed a new complaint stating the Sackler family could drop the multi-billion-dollar opioid settlement deal if they are not protected against the outstanding state lawsuits.

According to the lawyers, the family will have to put several hundred millions of dollars on legal costs if the lawsuits continue that could otherwise fund the settlement. The lawyers further stated that the family “may be unwilling—or unable—to make contributions towards the settlement.

The pharmaceutical giant proposed a settlement deal valued between $10 billion to $12 billion. The deal involves the Sackler family giving up ownership of the company and contributing at least $3 billion of their own funds, which might potentially go up to $4.5 billion, depending on the sale value of their international company, Mundipharma. A Chapter 11 bankruptcy protection was filed Sunday, September 15 as a part of the deal.

Twenty-three states and three territories have agreed to the multibillion-dollar settlement deal, while around two dozen other states involved are against it.