Purdue Pharma and the Sackler families negotiated an agreement with a coalition of states this week that, if accepted by a federal bankruptcy court judge, would oblige the Sacklers to pay up to $6 billion to states, individual claims, and opioid crisis abatement.
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The current arrangement, negotiated after eight states and the District of Columbia successfully rejected a previous accord, is civil in nature and does not shield the Sackler families from potential liabilities related to the opioid crisis.
If the deal is accepted, the Sacklers will pay a billion dollars more than the original arrangement.
As part of the agreement, the Sackler families will allow any institution or organisation in the United States to remove the Sackler name from physical facilities as well as academic, medical, and cultural programmes, scholarships, and endowments, as long as the Sacklers are notified first and public statements announcing the name removal do not “disparage” the family.
The Sackler families would also make a pre-drafted statement two days after the mediator’s plan is presented to bankruptcy court, expressing remorse that Purdue’s opioid medication, OxyContin, harmed communities but refusing to accept any criminal behaviour or wrongdoing.
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“The Sackler families are pleased to have reached a settlement with additional states that will allow very substantial additional resources to reach people and communities in need. The families have consistently affirmed that settlement is by far the best way to help solve a serious and complex public health crisis. While the families have acted lawfully in all respects, they sincerely regret that OxyContin, a prescription medicine that continues to help people suffering from chronic pain, unexpectedly became part of an opioid crisis that has brought grief and loss to far too many families and communities,” a statement from Sackler read.
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According to the court filing, Mediator Judge Shelley Chapman requested the bankruptcy court to allow victims of the opioid crisis to speak in court and address the Sackler families, as well as to force at least one member of each of the two branches of the Sackler Families to attend the complete hearing.
“We’re pleased with the settlement achieved in mediation, under which all of the additional settlement funds will be used for opioid abatement programs, overdose rescue medicines, and victims. With this mediation result, we continue on track to proceed through the appeals process on an expedited schedule, and we hope to swiftly deliver these resources,” Purdue Pharma confirmed the news to CNN on Thursday.
After overturning the prior agreement over concerns that it granted broad protection to third parties tied to the Sacklers and Purdue Pharma, Federal Bankruptcy Court Judge Robert Drain must now approve the settlement.
According to a news release from the Connecticut Attorney General’s office, the parties negotiated a settlement through court-ordered mediation that began in January.
Purdue Pharma entered bankruptcy in 2019, putting thousands of cases against them on hold.