The settlement caps years of political pressure and public outcry over the blockbuster drug OxyContin.
The Sackler family made billions of dollars on Purdue Pharma LP’s blockbuster painkiller OxyContin before their name was tarnished by a staggering public-health crisis in the U.S. Now they’re quitting the drug business as part of the company’s bankruptcy settlement, which will allow them to largely preserve — and potentially grow — the bulk of their fortune, an estimated $11 billion.
On Wednesday, U.S. Bankruptcy Judge Robert Drain approved Purdue’s plan to resolve thousands of opioid lawsuits that drove it to insolvency. As part of the settlement, the Sacklers have agreed to contribute about $4.5 billion, sell their pharmaceutical holdings and forfeit their equity in Purdue. (The Sacklers themselves are not the subject of the bankruptcy proceedings involving Purdue Pharma, but some members of the family are named alongside the company in the civil lawsuits.) In exchange, they will receive lifetime immunity from civil liability over their role in the opioid crisis.
The arm of the Justice Department that oversees bankruptcy court has staunchly opposed the deal, setting the stage for a potential appeal, which Drain’s ruling would have to overcome in order to become final. Matthew Gold of law firm Kleinberg Kaplan, speaking on behalf of some states still opposing the plan, said in court that the deal has “fatal flaws” that could see it overturned on appeal. Drain has said...
Read Full Story: https://www.bloomberg.com/news/features/2021-09-01/sackler-family-exits-bankruptcy-trial-over-purdue-pharma-s-oxycontin
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