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lawyers Representing the OxyContin manufacturer Purdue PharmaThe branches of the Sackler family that own it, the city, the state, the county, native American Tribes, addicts and others across the U.S. are expected to deliver a nearly unanimous message to a bankruptcy court judge on Friday: Approve a plan to settle thousands of opioid-related lawsuits against the company.
If U.S. Bankruptcy Judge Sean Lane upholds, it will close a long chapter — and perhaps an entire book — on the legal effort to hold the company accountable for its role in the opioid crisis linked to 900,000 deaths in the U.S. since 1999, including deaths from heroin and illicit fentanyl.
Closing arguments were expected on Friday, the third day of hearings on the bankruptcy plan for the company, which filed for protection six years ago as it faces lawsuits with claims that have swelled to trillions of dollars.
This time the opposition is quite quiet
The saga has been filled with emotional and contentious arguments between the multiple groups taking Purdue to court, often highlighting the potential mismatch between the pursuit of justice and the practical role of the bankruptcy court.
The U.S. Supreme Court rejected a previous deal because it said it was unfair for Sackler family members to receive immunity from a lawsuit over opioids. In the new arrangement, entities that do not opt for a settlement can sue them. The family members’ net worth runs into the billions, but most of their assets are held in offshore accounts in trusts that would be difficult to access through lawsuits.
This time, the government groups involved have reached even greater consensus and there has been less opposition from most individuals. Of the more than 54,000 personal injury victims who voted on whether the plan should be accepted. Only 218 said no. A large number of people included in that group did not vote.
A handful of objectors spoke during Thursday’s hearing, occasionally interrupting the judge. Some said the funds in the settlement should go only to the victims, and not to states and other government entities. Others wanted the judge to find members of the Sackler family criminally liable — something Lane said was beyond the scope of bankruptcy court, but the settlement does not prevent prosecutors from pursuing further.
A Florida A woman whose husband struggled with addiction after being given OxyContin following an accident has told a court the deal is not good enough.
“The natural laws of karma suggest that the Sacklers and Purdue Pharma should pay for what they did,” Pamela Bartz Halaschak said via video.
The deal would be one of the largest opioid settlements
The flood of lawsuits filed by government entities against Purdue and other drugmakers, drug wholesalers and pharmacy chains began about a decade ago.
Most major have already reached settlements totaling nearly $50 billion, with most of the money being spent to fight the opioid crisis.
The Purdue deal would rank among the biggest of them all. Members of the Sackler family must pay up to $7 billion and give up ownership of the company. No one is on its board or has received payments since 2018. Unlike a similar hearing four years ago, no one was called to testify at this week’s hearing.
The company will get a name change and new supervisors who will dedicate future profits to fighting the opioid crisis.
There are some non-financial provisions also. Some members of the Sackler family would be required to give up involvement in companies selling opioids in other countries.
Family members will also be barred from adding their names to institutions in exchange for charitable contributions. The name has already been removed from museums and universities.
And company documents, including many documents that would normally be subject to attorney-client privilege, are to be made public.
Some people hurt by Purdue’s opioids will get some money
Unlike other major opioid settlements, individuals harmed by Purdue’s products will be in line for some money as part of the settlement. About $850 million will be set aside for them, with more than $100 million of that amount going to help children who are struggling with opioid withdrawal.
About 139,000 people have active claims to the money. However, many of them have not shown proof that they were prescribed Purdue’s opioids and will not receive anything. Lawyers expect people who had the prescriptions for at least six months to get about $16,000 each and those who had them for longer than that to get about $8,000. Legal fees will reduce what people actually receive.
A woman who had a family member suffering from opioid addiction told the court via video on Thursday that the settlement does not help people suffering from substance use disorder.
“Tell me how you guys can sleep at night knowing that people are going to get so little money that they can’t do anything with it,” asked Lauren Ferrante of Staten Island. new york,
Most of the money is going to state and local governments to use in their efforts to reduce the harm caused by the opioid epidemic. The number of overdose deaths has been declining over the past few years, with experts believing this decline is partly due to the impact of settlement dollars.