In United States of America A bankruptcy judge has signaled he will approve a $7 billion settlement in the case of bankrupt drugmaker Purdue Pharma. By paying that amount, Purdue could settle thousands of lawsuits related to the opioid crisis. The deal reached by Judge Sean Lane in New York stipulates that the Sackler family, owners of the controversial opioid supplier, will pay billions of dollars over 15 years. The money will also be used to compensate thousands of people affected by the painkiller epidemic. Bankruptcy Judge Lane plans to explain his decision in more detail at Tuesday’s hearing.
Purdue Pharma produces the painkiller Oxycontin, known by the acronym Oxy, whose mass prescription is believed to have fueled the opioid crisis. Hundreds of thousands of people have died in the United States since 1999 from painkiller abuse. That Family Sackler was accused of widely promoting the drug to doctors while hiding the fact that the drug was addictive.
Previous deals have failed in the Supreme Court
The new settlement is now intended to replace an agreement declared invalid by the US Supreme Court last year. According to the judge, that would not protect family members from future lawsuits.
The settlement is one of the largest in a series of opioid settlements won by state and local governments against manufacturers, wholesalers and pharmacy chains. According to the US health authority CDC, more than 700,000 people died in the US between 1999 and 2022 from opioid overdoses, and those affected received painkillers via prescription or obtained them illegally.
One of the most complicated bankruptcy proceedings in US history
Lawyers have spoken out about one of the most complicated bankruptcy proceedings in the country’s history. Purdue filed for bankruptcy protection six years ago after lawsuits escalated into billions of dollars.
Recently, Purdue lawyers, as well as lawyers from the city, state, county, native tribes, addicted people and other affected parties, pushed unanimously to approve the plan. In contrast to previous trials, there were no protests in front of the courthouse.
Purdue attorney Marshall Huebner said in court that he hoped to “raise $40 trillion or $100 trillion” to offset the “unimaginable losses.” However, since this is not possible, the plan “will provide the greatest benefit to the greatest possible number of people in the shortest possible time.”
