News: Sacklers boost opioid settlement offer to $4.3 billion: sources.
NEW YORK (Reuters) – Members of the Sackler family who own Purdue Pharma LP have offered approximately $ 4.3 billion to settle extensive opioid litigation, up from $ 3 billion originally in settlement talks in OxyContin’s bankruptcy proceedings Manufacturer were suggested. Four people are familiar with the matter said.
Sackler’s family members are now ready to contribute $ 4.275 billion to resolve approximately 3,000 lawsuits filed by U.S. communities holding them and Purdue responsible for the damage caused by the opioid epidemic.
Purdue and representatives of the Sacklers declined to comment or did not immediately respond to inquiries.
Details of a far-reaching settlement could be set out in a Purdue restructuring plan that will be filed in a US bankruptcy court next week. Purdue filed for bankruptcy in 2019 amid an onslaught of opioid litigation. In November, the Stamford, Connecticut-based company pleaded guilty to three crimes relating to the marketing of prescription-only opioid pain relievers.
A previous settlement, worth more than $ 10 billion in Purdue, guaranteed the Sacklers $ 3 billion over seven years, with additional funds from family members dependent on sales of other international businesses they own. That offer virtually fell to $ 2.775 billion after the Sacklers agreed to pay $ 225 million to settle a civil law investigation by the Department of Justice.
Under the latest proposal, the Sacklers could continue to use the proceeds from the sale of these companies to cover the higher $ 4.275 billion payout, but would still have to make up for it. It’s not clear how long it would take the Sacklers to pay the proposed higher amount, but it would likely be a period of years, the sources said.
Settlement negotiations are ongoing and a final agreement has not yet been reached on how much the Sacklers will pay among family members, Purdue and U.S. communities complaining about the opioid crisis.
Elsewhere in the settlement negotiations, some litigants have urged that in lieu of a current proposal to liquidate and transfer assets to a nonprofit or similar entity run on behalf of plaintiffs and no longer controlled by the Sacklers, reviewing a sale. Two people familiar with the matter said.
Attorneys-general from two dozen states and Washington, DC, have spoken out against the plan because the new company would continue to sell OxyContin, which they believe is an inappropriately entanglement with the addictive pain medication.
Purdue admitted in November that it defrauded US officials and paid illegal setbacks to both doctors and an electronic health record provider in part of a widespread criminal malpractice that enabled improper opioid prescriptions.
In total, the company agreed to a $ 8.3 billion criminal penalty to resolve the U.S. Department of Justice investigation, most of which will go unpaid. A criminal sanction of $ 3.54 billion and a civil sanction of $ 2.8 billion are being considered in the Purdue bankruptcy process alongside $ trillion in unsecured claims.
Purdue agreed to pay $ 225 million for a $ 2 billion forfeit, with the Justice Department waiving the remainder if the company’s bankruptcy reorganization creates a nonprofit or similar entity that has the remaining 1.775 billion US dollars to US communities to fight the opioid crisis.
Sackler family members have not been prosecuted. They agreed to pay $ 225 million to resolve allegations that OxyContin was making false claims for government health programs like Medicare. You have denied the allegations.
The opioid epidemic has claimed the lives of around 450,000 people in the US since 1999 from overdoses on prescription pain relievers and illicit drugs like heroin and fentanyl, according to the US Centers for Disease Control and Prevention.
Purdue’s bankruptcy petition halted litigation against the company and its owners, the Sackler family. Since then, the company has been working to propose a restructuring plan to serve as a template for resolving the thousands of outstanding legal disputes.
Purdue’s proposal to resolve cases in a business valued at more than $ 10 billion depends largely on future donations of overdose reversal drugs and addiction treatment the company has under development.
How much the Sacklers will contribute has long been a central point in the negotiations between family members, Purdue and plaintiffs. Many states rejected their original $ 3 billion offer as being too low.
In December, two of Sackler’s family members apologized when they testified to a congressional panel about OxyContin’s role in the opioid crisis. The family members, who both previously served on Purdue’s board of directors, insisted that management assure them that the company was complying with regulatory and legal requirements in the wake of the opioid crisis.
Reporting by Mike Spector; Adaptation by Nick Zieminski
Original Source © Reuters