Latest news with #PurduePharma
Reuters
7 hours ago
- Business
- Reuters
Purdue Pharma begins vote on $7.4 bln opioid settlement
June 20 - Oxycontin maker Purdue Pharma received court approval on Friday to begin voting on its $7.4 billion bankruptcy settlement, while deferring questions about how state and local governments should spend the money they receive. The settlement, which will resolve thousands of opioid lawsuits against the drugmaker and its owners, members of the Sackler family, can not be finalized until after a vote from creditors, including state and local governments, and individuals who were harmed by Purdue's sale and marketing of the addictive painkiller Oxycontin. U.S. Bankruptcy Judge Sean Lane approved Purdue's disclosure statement at a court hearing in White Plains, NY, saying that it provided enough information for creditors to decide how to vote on the settlement. Purdue's current settlement, unlike a previous version that was rejected by the U.S. Supreme Court last year, would not shut off all opioid litigation against the Sacklers if it is approved in court. Creditors can choose not to accept the settlement and instead pursue lawsuits against the Sacklers, even if the overall deal is approved. Purdue took a major step toward finalizing the settlement earlier this week, when attorneys general of 55 U.S. states and territories signed up to support the deal. States, some of which sued Purdue and the Sacklers before the company went bankrupt in 2019, are some of Purdue's largest creditors, and they will receive the largest payments under the bankruptcy settlement. The states alleged that Purdue and the Sacklers fueled a deadly opioid epidemic through their aggressive marketing of addictive painkillers. States have pledged to use their share of the settlement money to combat the harms of the opioid crisis through efforts like providing addiction treatment and overdose reversal medication. But several individuals spoke up during the court hearing to express frustration about the lack of clarity on how the money will be spent. They demanded that states consult with victims of addiction when making spending decisions, and they pushed for safeguards to ensure that the money was not funneled to other state priorities like police budgets. Lane listened to several individuals who advocated for clearer restrictions on the settlement funds, but he said that those policy details were beyond the scope of the bankruptcy. "No one has appointed me the czar of opioid addiction treatment, and frankly I'm not qualified to do that," Lane said. If Purdue's bankruptcy plan passes a creditor vote, Lane will consider final approval of the deal in the fall of 2025. Purdue, which pleaded guilty to charges related to its opioid marketing in 2007 and 2020, said the settlement will fund life-saving treatments and provide direct compensation to individuals harmed by its products. The Sacklers have expressed regret about their company's role in the opioid crisis but denied wrongdoing, and they have said they would defend themselves vigorously if sued. The case is Purdue Pharma LP, U.S. Bankruptcy Court for the Southern District of New York, No. 19-23649. For Purdue: Marshall Huebner, Eli Vonnegut, and Ben Kaminetzky of Davis Polk & Wardwell, among others For the creditors committee: Arik Preis and Mitchell Hurley of Akin Gump Strauss Hauer & Feld, among others Read more: Purdue Pharma $7.4 billion opioid settlement wins broad support from US states US Supreme Court blocks Purdue Pharma bankruptcy settlement US Supreme Court Purdue ruling makes mass litigation tougher to resolve in bankruptcy
Yahoo
7 hours ago
- Business
- Yahoo
Purdue Pharma L.P. Receives Court Approval of Disclosure Statement Filed in Connection with its Plan of Reorganization
Plan to deliver more than $7.4 billion of creditor distributions Company to begin creditor vote solicitation process; voting deadline set for September 30, 2025 STAMFORD, Conn., June 20, 2025--(BUSINESS WIRE)--Purdue Pharma L.P. ("Purdue") today announced that the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") approved the Company's disclosure statement for its Chapter 11 Plan of Reorganization. The disclosure statement provides creditors with detailed information on the terms of the Plan and will accompany the ballots that will be sent to the more than 600,000 claimants eligible to vote. The court has set a September 30 voting deadline and a November confirmation hearing. "Following the 2024 Supreme Court ruling, we doubled down on our commitment to work with our creditors to design a new Plan that delivers unprecedented value to those affected by the opioid crisis. Today's disclosure statement approval is a major milestone in that effort," said Purdue Board Chairman Steve Miller. "We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good. We sincerely thank our stakeholders for their dedication and collaboration, and we look forward to having the plan confirmed and consummated as quickly as possible." Purdue's Plan of Reorganization includes the following elements: Assuming full creditor participation, the Sacklers will make settlement payments of approximately $6.5 billion in installments over the next 15 years, subject to certain reserves. They will pay $1.5 billion on the day the Plan becomes effective. Purdue will contribute 100% of its assets, with an expected $900 million in cash available for distribution on the day of emergence. Notably, the Plan is the only opioid settlement to date that meaningfully compensates individual victims. Assuming full participation, individual victims will receive more than $850 million. In addition to this cash value, the Plan creates a new company with a public minded mission. The new company will provide millions of doses of lifesaving opioid use disorder treatment and overdose reversal medicines at no profit. The Sacklers, who exited the Board of Purdue by the end of 2018 and have had no involvement in Purdue since that time, will have no role whatsoever in the new company. Purdue Pharma L.P. will be liquidated following emergence. The Plan also provides a historic level of transparency. It creates a document repository that will make available to the public millions of documents, including privileged documents, related to Purdue's historical sales and marketing practices. The Plan does not contain third-party releases and fully complies with the Supreme Court's June 2024 decision in Harrington. The disclosure statement approved today provides the full details about the material aspects of the plan. The Plan is subject to confirmation by the Bankruptcy Court. This release is not intended as a solicitation of a vote on the Plan. About Purdue Pharma L.P. Purdue Pharma and its subsidiaries develop, manufacture and market medications to meet the evolving needs of healthcare professionals, patients, and caregivers. Purdue and its subsidiaries focus on balancing innovative science with clinically effective, compassionate care. The Company's goals are to serve patients who rely on its medicines, pursue public health initiatives intended to help abate the opioid crisis, advance its pipeline of branded and generic medications, and introduce medicines that will help save and improve lives. For more information, visit View source version on Contacts Media Contact: news@
Chicago Tribune
14 hours ago
- Business
- Chicago Tribune
Purdue Pharma's $7B opioid settlement plan could get votes from victims and cities
OxyContin maker Purdue Pharma 's $7 billion-plus plan to settle thousands of lawsuits over the toll of opioids will go before a judge Friday, potentially setting up votes on whether to accept it for local governments, people who became addicted to the drug and other groups. This month, 49 states announced they have signed on to the the proposal. Only Oklahoma, which has a separate settlement with the company, is not involved. U.S. Bankruptcy Court Judge Sean Lane could decide as soon as Friday whether to advance the nationwide settlement, which was hammered out in negotiations between the company, groups that have sued and representatives of members of the Sackler family who own the company. If Lane moves the plan forward as it's been presented, government entities, emergency room doctors, insurers, families of children born into withdrawal from the powerful prescription painkiller, individual victims and their families and others would have until Sept. 30 to vote on whether to accept the deal. The settlement is a way to avoid trials with claims from states alone that total more than $2 trillion in damages. If approved, the settlement would be among the largest in a wave of lawsuits over the past decade as governments and others sought to hold drugmakers, wholesalers and pharmacies accountable for the opioid epidemic that started rising in the years after OxyContin hit the market in 1996. The other settlements together are worth about $50 billion, and most of the money is to be used to combat the crisis. In the early 2000s, most opioid deaths were linked to prescription drugs, including OxyContin. Since then, heroin and then illicitly produced fentanyl became the biggest killers. In some years, the class of drugs was linked to more than 80,000 deaths, but that number dropped sharply last year. Last year, the U.S. Supreme Court rejected a version of Purdue's proposed settlement. The court found it was improper to protect members of the Sackler family from lawsuits over opioids, even though they themselves were not filing for bankruptcy protection. In the new version, groups that don't opt in to the settlement would still have the right to sue members of the wealthy family whose name once adorned museum galleries around the world and programs at several prestigious U.S. universities. Under the plan, the Sackler family members would give up ownership of Purdue. They resigned from the company's board and stopped receiving distributions from its funds before the company's initial bankruptcy filing in 2019. The remaining entity would get a new name and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation's addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims. That makes it different from the other major settlements. The payments would not begin until after a hearing, likely in November, during which Judge Lane would be asked to approve the entire plan if enough of the affected parties agree.
15 hours ago
- Business
Purdue Pharma's $7B opioid settlement plan could get votes from victims and cities
OxyContin maker Purdue Pharma 's $7 billion-plus plan to settle thousands of lawsuits over the toll of opioids will go before a judge Friday, potentially setting up votes on whether to accept it for local governments, people who became addicted to the drug and other groups. This month, 49 states announced they have signed on to the the proposal. Only Oklahoma, which has a separate settlement with the company, is not involved. U.S. Bankruptcy Court Judge Sean Lane could decide as soon as Friday whether to advance the nationwide settlement, which was hammered out in negotiations between the company, groups that have sued and representatives of members of the Sackler family who own the company. If Lane moves the plan forward as it's been presented, government entities, emergency room doctors, insurers, families of children born into withdrawal from the powerful prescription painkiller, individual victims and their families and others would have until Sept. 30 to vote on whether to accept the deal. The settlement is a way to avoid trials with claims from states alone that total more than $2 trillion in damages. If approved, the settlement would be among the largest in a wave of lawsuits over the past decade as governments and others sought to hold drugmakers, wholesalers and pharmacies accountable for the opioid epidemic that started rising in the years after OxyContin hit the market in 1996. The other settlements together are worth about $50 billion, and most of the money is to be used to combat the crisis. In the early 2000s, most opioid deaths were linked to prescription drugs, including OxyContin. Since then, heroin and then illicitly produced fentanyl became the biggest killers. In some years, the class of drugs was linked to more than 80,000 deaths, but that number dropped sharply last year. Last year, the U.S. Supreme Court rejected a version of Purdue's proposed settlement. The court found it was improper to protect members of the Sackler family from lawsuits over opioids, even though they themselves were not filing for bankruptcy protection. In the new version, groups that don't opt in to the settlement would still have the right to sue members of the wealthy family whose name once adorned museum galleries around the world and programs at several prestigious U.S. universities. Under the plan, the Sackler family members would give up ownership of Purdue. They resigned from the company's board and stopped receiving distributions from its funds before the company's initial bankruptcy filing in 2019. The remaining entity would get a new name and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation's addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims. That makes it different from the other major settlements. The payments would not begin until after a hearing, likely in November, during which Judge Lane would be asked to approve the entire plan if enough of the affected parties agree.
Al Arabiya
16 hours ago
- Business
- Al Arabiya
Purdue Pharma's $7B Opioid Settlement Plan Could Get Votes From Victims and Cities
Purdue Pharma's $7 billion-plus plan to settle thousands of lawsuits over the toll of opioids will go before a judge Friday, potentially setting up votes on whether to accept it for local governments, people who became addicted to the drug, and other groups. This month, 49 states announced they have signed on to the proposal. Only Oklahoma, which has a separate settlement with the company, is not involved. US Bankruptcy Court Judge Sean Lane could decide as soon as Friday whether to advance the nationwide settlement, which was hammered out in negotiations between the company, groups that have sued, and representatives of members of the Sackler family who own the company. If Lane moves the plan forward as it's been presented, government entities, emergency room doctors, insurers, families of children born into withdrawal from the powerful prescription painkiller, individual victims and their families, and others would have until Sept. 30 to vote on whether to accept the deal. The settlement is a way to avoid trials with claims from states alone that total more than $2 trillion in damages. If approved, the settlement would be among the largest in a wave of lawsuits over the past decade as governments and others sought to hold drugmakers, wholesalers, and pharmacies accountable for the opioid epidemic that started rising in the years after OxyContin hit the market in 1996. The other settlements together are worth about $50 billion, and most of the money is to be used to combat the crisis. In the early 2000s, most opioid deaths were linked to prescription drugs, including OxyContin. Since then, heroin and then illicitly produced fentanyl became the biggest killers. In some years, the class of drugs was linked to more than 80,000 deaths, but that number dropped sharply last year. Last year, the US Supreme Court rejected a version of Purdue's proposed settlement. The court found it was improper to protect members of the Sackler family from lawsuits over opioids even though they themselves were not filing for bankruptcy protection. In the new version, groups that don't opt in to the settlement would still have the right to sue members of the wealthy family, whose name once adorned museum galleries around the world and programs at several prestigious US universities. Under the plan, the Sackler family members would give up ownership of Purdue. They resigned from the company's board and stopped receiving distributions from its funds before the company's initial bankruptcy filing in 2019. The remaining entity would get a new name, and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation's addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims. That makes it different from the other major settlements. The payments would not begin until after a hearing, likely in November, during which Judge Lane would be asked to approve the entire plan if enough of the affected parties agree.
