A U.S. Bankruptcy Court judge is scheduled to articulate the justification for approving Purdue Pharma's widespread opioid settlement plan on Tuesday. The settlement, which stands as one of the most substantial resolutions related to the opioid epidemic, involves the Sackler family committing to pay up to $7 billion over 15 years, primarily to support victims and state and local government recovery efforts.
Judge Sean Lane previously expressed his intent to accept the settlement, which aims to allocate significant financial resources toward individuals affected by opioid addiction, a move rarely seen in prior settlements.
The settlement intricately ties in financial support for state and local governments as well as direct compensation for affected individuals, totaling over $850 million designated for personal victims, including children born with opioid dependency. Individuals seeking payments must demonstrate they were prescribed OxyContin, with potential payouts of approximately $8,000 or $16,000 based on eligibility.
In addition to financial reparations, the Sackler family will surrender ownership of Purdue Pharma, transitioning control to a newly established entity called Knoa Pharma, with an administration structured to prioritize public health over profit. This shift aims to distance the Sacklers from the pharmaceutical operations that have contributed to the ongoing crisis.
Moreover, the family has agreed to relinquish naming rights on institutions in exchange for funding, a change in strategy reflecting the backlash against their previous philanthropic efforts.
Purdue Pharma filed for bankruptcy in 2019 amid a deluge of lawsuits over the opioid crisis, leading to complex legal battles. The new proposal grants victims the opportunity to pursue legal action against family members who do not join the settlement, countering the Supreme Court's prior rejection of an earlier plan that shielded the Sacklers from litigation. The evolving landscape surrounding Purdue Pharma signifies a potential conclusion to a lengthy legal struggle tied to the opioid epidemic.
Judge Sean Lane previously expressed his intent to accept the settlement, which aims to allocate significant financial resources toward individuals affected by opioid addiction, a move rarely seen in prior settlements.
The settlement intricately ties in financial support for state and local governments as well as direct compensation for affected individuals, totaling over $850 million designated for personal victims, including children born with opioid dependency. Individuals seeking payments must demonstrate they were prescribed OxyContin, with potential payouts of approximately $8,000 or $16,000 based on eligibility.
In addition to financial reparations, the Sackler family will surrender ownership of Purdue Pharma, transitioning control to a newly established entity called Knoa Pharma, with an administration structured to prioritize public health over profit. This shift aims to distance the Sacklers from the pharmaceutical operations that have contributed to the ongoing crisis.
Moreover, the family has agreed to relinquish naming rights on institutions in exchange for funding, a change in strategy reflecting the backlash against their previous philanthropic efforts.
Purdue Pharma filed for bankruptcy in 2019 amid a deluge of lawsuits over the opioid crisis, leading to complex legal battles. The new proposal grants victims the opportunity to pursue legal action against family members who do not join the settlement, countering the Supreme Court's prior rejection of an earlier plan that shielded the Sacklers from litigation. The evolving landscape surrounding Purdue Pharma signifies a potential conclusion to a lengthy legal struggle tied to the opioid epidemic.
