The latest development in the nationwide litigation efforts against opioid companies is shaping up to be a game-changer.
Purdue Pharma has tentatively reached a settlement with 23 states and over 2,000 cities that sued the company over its role in creating the opioid crisis. The deal is estimated to be between $10-12 bilion with a $3 billion guarantee over 7 years to be distributed to the aggrieved jurisdictions. If finalized it would remove Purdue from all pending litigation.
The Washington Post reports:
Under terms of a plan negotiated for months, the Sacklers would relinquish control of Stamford, Conn.-based Purdue Pharma and admit no wrongdoing. The company would declare bankruptcy and be resurrected as a trust whose main purpose would be producing medications to combat the opioid epidemic.
The pending settlement has generated mixed reactions from the governments pursuing cases against the company. The article notes that while some are pleased, others are resistant. The Attorney Generals for Maryland as well as California, Connecticut, North Carolina, New York, New Jersey and Pennsylvania have voiced opposition to the settlement citing concerns that the values are overestimated and the settlement money may never materialize:
“The $10 to $12 billion figures are vaporous,” said Maryland Attorney General Brian E. Frosh (D). “I have not seen a deal that would yield anywhere close to those kinds of returns.”
For more information:
Purdue Pharma reaches tentative deal in federal, state opioid lawsuits (The Washington Post)
Purdue Pharma Settles Opioid Lawsuit with Oklahoma Attorney General (Conduit Street)
Oklahoma Subjects Johnson & Johnson to Landmark Opioid Ruling (Conduit Street)