Please ensure Javascript is enabled for purposes of website accessibility

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

2 days ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

2 days ago

In Win for Trump, US Supreme Court Limits Judges’ Power to Block Birthright Citizenship Order

2 days ago

California’s Newsom Sues Fox News for $787 Million for Defamation Over Trump Call

2 days ago

Motorcycle Collides With Tractor in Fatal Fresno County Collision

2 days ago

Fourth of July Celebrations Begin Saturday. Here’s Your Fresno Area Guide

3 days ago

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

3 days ago

State Department Approves $30 Million for Gaza Humanitarian Foundation

3 days ago

Cargo Ship That Caught Fire Carrying Electric Vehicles Sinks in the Pacific

4 days ago

4 Million Acres of California Forests Could Lose Protection. What Trump’s ‘Roadless Rule’ Repeal Could Do

4 days ago
After Bankruptcy Filing, Purdue Pharma May Not Be off Hook
gvw_ap_news
By Associated Press
Published 6 years ago on
September 16, 2019

Share

Purdue Pharma filed for bankruptcy in the first step in a complex, multibillion-dollar plan by the maker of OxyContin to settle thousands of lawsuits brought against it by state and local governments over the nation’s deadly opioid disaster.

About half the states and lawyers representing at least 1,000 local governments have agreed to the tentative settlement, which the company says could be worth $10 billion to $12 billion over time and would include at least $3 billion from the Sacklers.
The company and members of the Sackler family, which owns it, expressed sympathy but not responsibility.
“Like families across America, we have deep compassion for the victims of the opioid crisis,” family members said in a statement, calling the settlement plan a “historic step towards providing critical resources that address a tragic public health situation.”
But the bankruptcy filing, made late Sunday, may not get either the drugmaker or the Sacklers off the legal hook.
About half the states and lawyers representing at least 1,000 local governments have agreed to the tentative settlement, which the company says could be worth $10 billion to $12 billion over time and would include at least $3 billion from the Sacklers.
Under the settlement, the family would give up control of the company, and Purdue Pharma would be transformed into a sort of hybrid between a corporation and a charity. It would continue to sell opioids but its profits would be devoted to cleaning up the opioid mess and reimbursing state and local governments for the cost of the crisis that has killed more than 400,000 Americans in the past two decades.

The Company Is Facing Some 2,600 Lawsuits

But a number of the other states that are holding out have made it clear that they intend to object to the deal in bankruptcy court and seek to continue their lawsuits against members of the Sackler family.
“At every turn, we will fight their craven strategy to use bankruptcy to shield their wealth & to evade our claims to secure billions of dollars for addiction science & treatment,” Connecticut Attorney General William Tong tweeted Monday.
In all, the company is facing some 2,600 lawsuits, mostly from local governments.
It will be up to federal bankruptcy Judge Robert Drain in White Plains, New York, to decide whether to approve the settlement, and also whether those state lawsuits can continue. A court hearing on the bankruptcy plan is expected Tuesday.
For Purdue and the Sacklers, the effort revolves around getting more states to agree to the settlement, which could make approval more likely.
“We are hopeful that in time, those parties who are not yet supportive will ultimately shift their focus to the critical resources that the settlement provides to people and problems that need them,” the families of late company owners Mortimer and Raymond Sackler said in their statement.
The Sacklers were listed by Forbes magazine in 2016 as one of the 20 wealthiest families in the U.S. In a court filing last week, the New York attorney general’s office contended that the family had transferred $1 billion to itself through Swiss bank accounts and other means.

A Small Fraction of Prescription Opioids Shipped Over the Years

As some states agreed to the deal last week, others complained that it didn’t hold the family or company sufficiently accountable for their roles in the crisis.
In court filings, the family and the company have pushed back against accusations that the company played a central role in causing the crisis by overselling the benefits of its powerful prescription painkillers and downplaying the addiction risk.

“The resumption of litigation would rapidly diminish all the resources of the company and would be lose-lose-lose all the way around.” — Steve Miller, chairman of Purdue’s board of directors
The company’s drugs represent a small fraction of the prescription opioids shipped over the years — and most fatal overdoses have been linked to illegal opioids such as heroin and illicitly made fentanyl.
Steve Miller, chairman of Purdue’s board of directors, said on a conference call with reporters that an admission of wrongdoing is not part of the deal.
He warned that as legal battles drag on, the company’s costs grow, leaving less for the plaintiffs in lawsuits.
“The resumption of litigation would rapidly diminish all the resources of the company and would be lose-lose-lose all the way around,” he said.
One likely result of the company’s filing is that it will be removed from the first federal trial over the toll of opioids, scheduled to start Oct. 21 in Cleveland. Johnson & Johnson and its subsidiaries along with drug distributors and one pharmacy chain, Walgreens, remain as defendants.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

I Detest Netanyahu, but on Some Things He’s Actually Right

DON'T MISS

University of Virginia President Resigns Under Pressure From Trump Administration

DON'T MISS

How Did the Supreme Court Rule? Here’s a Look at the Big Cases

DON'T MISS

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

DON'T MISS

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

DON'T MISS

Tensions Flare at Announcement of Major Fresno County Gang Takedown

DON'T MISS

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

DON'T MISS

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

DON'T MISS

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

DON'T MISS

US Supreme Court Preserves Key Element of Obamacare

UP NEXT

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

UP NEXT

Tesla Executive, Elon Musk Confidant Leaves EV Maker, Bloomberg News Reports

UP NEXT

How a Birthday Boat Ride on Lake Tahoe Turned Tragic

UP NEXT

Cuomo Concedes to Mamdani in New York City Democratic Mayoral Contest

UP NEXT

Mamdani Holds Lead Over Cuomo in Democratic Primary for NYC Mayor

UP NEXT

Clovis Man Sentenced to 8 Years in Federal Prison in Deadly Fentanyl Case

UP NEXT

Victims Identified as Death Toll Climbs to 8 in Lake Tahoe Boating Tragedy

UP NEXT

Florida to Build ‘Alligator Alcatraz’ Detention Center for Migrants in Everglades

UP NEXT

Americans Worry Conflict With Iran Could Escalate, Reuters/Ipsos Poll Finds

UP NEXT

Advisory Warns of ‘Heightened Threat Environment’ in US After Iran Strikes

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

2 days ago

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

2 days ago

Tensions Flare at Announcement of Major Fresno County Gang Takedown

2 days ago

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

2 days ago

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

2 days ago

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

2 days ago

US Supreme Court Preserves Key Element of Obamacare

2 days ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

2 days ago

Fresno Unified Trustees Will Get Automatic Raises on Tuesday

2 days ago

Alleged ‘Fake’ ICE Agents Charged. Fresno Court Date Set

2 days ago

I Detest Netanyahu, but on Some Things He’s Actually Right

Like a lot of people of center-right/center-left political leanings, I’ve spent the past few decades detesting Prime Minister Benjamin Netan...

2 days ago

2022 Election Rally for Netanyahu
2 days ago

I Detest Netanyahu, but on Some Things He’s Actually Right

University of Virginia President James Ryan Resigns
2 days ago

University of Virginia President Resigns Under Pressure From Trump Administration

2 days ago

How Did the Supreme Court Rule? Here’s a Look at the Big Cases

Zohran Mamdani Speaks to Supporters
2 days ago

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

American Flag Revolver
2 days ago

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

Rob_Bonta_Speaking_At_Press_Conference_1280x720
2 days ago

Tensions Flare at Announcement of Major Fresno County Gang Takedown

Garry_Bredefeld_Sandra_Celedon_Mesure_C_1280x720
2 days ago

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

Fresno_Unified_Raises_1280x720
2 days ago

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

Help continue the work that gets you the news that matters most.

Search

Send this to a friend