Although the U.S. Bankruptcy Court approved the OxyContin maker’s reorganization plan that freed the Sacklers from greater financial accountability and shielded them from additional lawsuits, the Department of Justice moved to block the Purdue Pharma bankruptcy deal.
A U.S. judge said on Sept. 1 he would approve OxyContin maker Purdue Pharma LP’s bankruptcy reorganization plan, clearing a path to resolve thousands of opioid lawsuits and shielding the company’s wealthy Sackler family owners from future opioid litigation.
Fifteen more states reached an agreement with Purdue Pharma LP and members of its wealthy Sackler family owners that moved the OxyContin maker a step closer to resolving widespread opioid litigation and exiting bankruptcy protection.
Massachusetts sued a unit of French advertising company Publicis Groupe SA on May 6, accusing it of fueling the U.S. opioid crisis by using unfair and deceptive marketing to help drugmaker Purdue Pharma sell more OxyContin.
Purdue Pharma LP filed a bankruptcy plan on March 15 that would resolve thousands of opioid lawsuits by restructuring the OxyContin maker into an entity that would steer profits to plaintiffs and require the company’s Sackler family owners to contribute nearly $4.3 billion to the settlement.
Purdue Pharma LP pleaded guilty to criminal charges over the handling of the company’s addictive prescription painkiller OxyContin, capping a deal with federal prosecutors to resolve an investigation into the drugmaker’s role in the U.S. opioid crisis.
A settlement valued at $8.34 billion was reached between Purdue Pharmaand the Justice Department, which required the drug company to plead guilty to three felonies related to its marketing and distribution of OxyContin, according to the Wall Street Journal.
McKesson Corp. said the company and two other major U.S. drug distributors could be expected to pay up to $21 billion under a new proposal by state attorneys general to resolve lawsuits alleging they helped fuel the U.S. opioid crisis.
Purdue Pharma LP agreed to plead guilty to criminal charges over the handling of the company’s addictive prescription opioid OxyContin, in a deal with U.S. prosecutors that effectively sidestepped paying billions of dollars in penalties and stopped short of criminally charging its executives or wealthy Sackler family owners.
U.S. states claimed they are owed $2.2 trillion to address harm from OxyContin maker Purdue Pharma LP’s alleged role in America’s opioid epidemic, accusing the drugmaker in new filings of pushing prescription painkillers on doctors and patients while playing down the risks of abuse and overdose.