Purdue Pharma bankruptcy settlement facing multiple appeals

Objections to a historic settlement with Purdue Pharma are mounting in the form of appeals, with Rhode Island’s attorney general saying Wednesday the plan doesn’t hold the OxyContin maker or its owners accountable for its role in sparking the opioid crisis.

Rhode Island appealed Tuesday in U.S. Bankruptcy Court in New York. Separate appeals have already been filed by the U.S. Bankruptcy Trustee, California, Connecticut, the District of Columbia, Maryland and Washington state, plus some Canadian local governments and other Canadian entities.

Any successful appeal could undo the deal, not just that state’s piece of it.

Rhode Island Attorney General Peter Neronha, a Democrat, said he doesn’t accept that the resolution between Purdue Pharma and thousands of state and local governments is sufficient. The Sackler family has not been transparent about its wealth, he said, so it’s difficult to calculate how much punishment any resolution will inflict.

Estimates have put the collective wealth of family members who own the company at over $10 billion.

Neronha also said he dislikes that the settlement protects the Sacklers from lawsuits over opioids.

The state would be entitled to an estimated $21.6 million over nine years, or about $2.4 million annually, he said.

“It’s just not a lot,” Neronha said. “It may sound like a lot, I guess, but it’s not a lot, given the scope of the problem, both past, present and future.”

A federal bankruptcy judge approved a plan this month to turn Purdue, based in Stamford, Conn., into a new company no longer owned by members of the Sackler family, with its profits going to fight the opioid epidemic.

The deal resolves some 3,000 lawsuits filed by state and local governments including Massachusetts, Native American tribes, unions, hospitals and others who claimed the company’s marketing of prescription opioids helped spark and continue an overdose epidemic.

from Boston Herald https://ift.tt/3F3gRec