Published: Thu, September 19, 2019
Global News | By Blake Casey

After bankruptcy filing, Purdue Pharma may not be off hook

After bankruptcy filing, Purdue Pharma may not be off hook

In court papers filed in NY on Sunday, Sept. 15, 2019, Purdue Pharma, the drug's manufacturer, fli.

Purdue says filing for bankruptcy will free up money to states and local governments that have sued the company over its alleged role in the opioid epidemic.

He said Purdue plans to argue to opposing states that fighting the possible settlement will likely result in additional and more costly cases.

States suing the Sacklers, including several over the past week, allege the family improperly reaped billions of dollars from opioid sales despite knowledge of their harmful effects.

Healey, whose audience included about a dozen people whose lives have been ravaged by opioid addiction, said restructuring Purdue would not generate as much cash as executives have predicted.

The deal "avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis", Miller said.

Purdue, which is based in Stamford, Connecticut, has been accused by virtually every USA state of exaggerating the pain killer OxyContin's benefits while downplaying how addictive the medicine is.

The Sacklers had an estimated net worth of $13 billion as of 2016, making them America's 19th-richest family, according to Forbes magazine.

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A single large settlement often is seen as the best way to resolve cases like these, bankruptcy attorney Jerry Reisman said.

In a statement, the families of late company owners Mortimer and Raymond Sackler said they have "deep compassion for the victims of the opioid crisis" and believe the settlement framework "is a historic step toward providing critical resources that address a tragic public health situation". Because so many states objected to the settlement, it could complicate the process.

In a statement, members of the Sackler family controlling Purdue said they hoped those opposing the current settlement offer would eventually change their minds. The money moved through the Swiss account to one in the Bailiwick of Guernsey, in the Channel Islands, and then to Mortimer Sackler, court filings said.

The settlement, which does not include any admission of wrongdoing, would reorganize Purdue during the bankruptcy into a trust that would continue to produce OxyContin, as well as overdose "rescue" drugs that would be distributed at no cost to communities across the country.

It said Sackler transferred almost $40 million to Central Eight Realty LLC, which owns a NY townhouse on his behalf.

TJ Donovan, the attorney general of Vermont, said in a statement that the state wasn't joining in the settlement because the reported value of the deal isn't guaranteed.

The bankruptcy filing is aimed at settling thousands of lawsuits, mostly filed by state and local governments. But a modification to the initial settlement to satisfy more cases could delay the case. "Your average drug dealer gets in way more trouble than this family that's just taken out a whole generation of our people". Attorneys for the committee said they negotiated a structure to be approved by a bankruptcy court.

The filing also said Sackler made a $4 million wire transfer to Cherry Tree Holdings LLC, which owns a home in Amagansett, New York, on Sackler's behalf.

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