Members of the billionaire Sackler family have made a cash offer to settle thousands of opioid-related lawsuits against them and their company, Purdue Pharma, offers up to $6 billion, up $1 billion more than the previous offer, according to a mediator reported filed Friday afternoon in bankruptcy court.
But the deal was not done. The Sacklers didn’t budge from the line they had drawn in the sand at the outset of the case. In exchange for their billions of dollars, they continue to demand an end to all civil claims against them relating to Purdue and opioids, and such claims will be banned in the future.
Legal experts and the public have criticized the Sackler family’s efforts to seek individual protection from liability. It is usually granted to companies seeking bankruptcy restructuring, such as Purdue, but is rarely extended to owners who have not filed for bankruptcy individually. Eight states and the District of Columbia have refused to sign on to an earlier proposal because of Sackler’s liability shields.
The mediator, Judge Shelley Chapman, a federal bankruptcy judge, said in her report that “a majority” of those states have now agreed to the new offer. But the withholdings remain and the deal has yet to be done.
Earlier Offer includes a commitment from the Sacklers of $4.55 billion, including a $225 million federal payment, to be paid out over approximately nine years. Under the new offer, the Sacklers will pay a total of $5.5 billion, with additional contributions of up to $500 million, depending on the sale of their international pharmaceutical companies. The Sacklers will have 18 years to pay the additional $1 billion.
The bankruptcy plan calls for Sackler’s money, plus billions of other dollars from Purdue, to be given to funds for states, cities, and tribes dedicated to the treatment and prevention of opioid addiction, and compensate the victims.
Dubbed “the Nine,” the incarcerated states, which include Connecticut, Washington, California and Maryland, have been on the reconciliation table with Purdue and the Sacklers since January.
While negotiations continue, the period against all lawsuits against both Purdue and the Sacklers, which has been ongoing since September 2019, was extended this week and will now expire on March 3. 3.
A representative of one branch of the family, a descendant of Mortimer Sackler, declined to comment; A representative for another branch, a descendant of Raymond Sackler, did not respond to a request for comment.
Judge Chapman requested an extension of the deadline for the mediation negotiations through February 28. Noting that the “unanimous acceptance” requested by the Sacklers had not yet been reached, she suggested that the negotiations be Subsequent negotiations may reach that end or create another set of plans. that would not require consensus.
Meanwhile, Purdue, who was dismissed by U.S. District Judge Colleen McMahon in December, is pursuing an appeal in the Second Circuit Court of Appeals. Oral debates are expected to take place in April.
“We remain focused on achieving our goal of providing urgently needed funds to the American people to mitigate the opioid crisis,” Purdue said in a statement. We believe that global settlement is the fastest and most cost-effective exit from Chapter 11 and we will continue to work to build consensus as we proceed with the appeals process with the U.S. Court of Appeals. Period for the Second Round. ”
https://www.nytimes.com/2022/02/18/health/sacklers-bankruptcy-opioids.html Raised Invaders Offer to Settle Drug Lawsuits Over $1 Billion