U.S. Bankruptcy Judge, Robert Drain on Wednesday conditionally approved a sweeping settlement that will remove the Sackler family from ownership of OxyContin maker, Purdue Pharma and allocate about $10 billion to address the opioid crisis
Gatekeepers News report that 3,000 lawsuits were filed against the company by State and local governments, Native American tribes, unions and others and the settlement will resolve most.
The company is accused of backing the overdose epidemic by aggressively marketing the prescription painkiller, that reportedly killed half a million Americans in the past two decades.
The Sacklers, under the settlement, are expected to exit the opioid business wholly and provide $4.5 billion.
They will, however, be shielded from any future lawsuits over opioids.
The drugmaker itself will be reorganized into a new charity-oriented company with a board appointed by public officials and will funnel its profits into government-led efforts to prevent and treat addiction.
Also, the settlement sets up a compensation fund that will pay some victims of drugs an expected $3,500 to $48,000 each.
The bankruptcy judge, based in White Plains, New York said that while he does not have “fondness for the Sacklers or sympathy for them,” collecting money from them through lawsuits instead of a settlement would be complicated.
The development comes after almost two years that the Stamford, Connecticut-based company filed for bankruptcy under the weight of the lawsuits.
State and local governments supported the plan, but nine states and others had opposed it, mainly due to the protections granted to the family.
The Attorneys General of Connecticut, the District of Columbia and Washington state have declared that they will either appeal the ruling or explore the possibility of doing so.
The Sacklers “should not be allowed to manipulate bankruptcy laws to evade justice and protect their blood money,” Connecticut’s William Tong said.
Gatekeepers News reports that some families who lost loved ones to drugs also kicked against the settlement, including Ed Bisch, of Westampton, New Jersey, whose 18-year-old son died of an overdose nearly 20 years ago. “The Sacklers are buying their immunity,” he said.
But other families said they did not want to risk losing the money that will go toward treatment and prevention.
“If they gave me a million dollars, would it help bring back my son?” said Lynn Wencus, of Wrentham, Massachusetts. “Let’s help the people who are really struggling with this disease.”
Members of the Sackler family, in a statement, said: “While we dispute the allegations that have been made about our family, we have embraced this path in order to help combat a serious and complex public health crisis.”
