NEW YORK — On Friday, lawyers representing OxyContin maker Purdue Pharma, the affiliates of the Sackler family that own it, cities, states, counties, Indian tribes, people with addictions and others across the U.S. are expected to make a near-unanimous request for a bankruptcy judge to approve a plan to resolve thousands of opioid-related lawsuits against the company.
If U.S. Bankruptcy Judge Sean Lane complies, it will close a long chapter (and maybe the entire book) of a legal odyssey trying to hold the company accountable for its role in the opioid crisis linked to 900,000 deaths in the U.S. since 1999, including deaths from heroin and illicit fentanyl.
Closing arguments were expected Friday, the third day of hearings on the company's bankruptcy plan, which filed for protection six years ago as it faces lawsuits that have racked up trillions of dollars in claims.
Saga was emotional and is full of controversial disputes between many groups that sued Purduewhich often exposes a possible discrepancy between the pursuit of justice and the practical role of the bankruptcy court.
The US Supreme Court rejected the previous deal because it said it was inappropriate for members of the Sackler family to receive immunity from opioid lawsuits. In a new arrangementorganizations that do not agree to the settlement agreement can sue them. The family members collectively own billions, but most of their assets are held in trusts in offshore accounts that would be difficult to access through lawsuits.
This time there was even greater consensus among the government groups involved, and resistance from individuals was largely muted. Of the more than 54,000 personal injury victims who voted to approve the plan. only 218 said no. More people in this group did not vote.
Several opponents spoke at Thursday's hearing, sometimes heckling the judge. Some said only victims should receive settlement funds, not states and other government agencies. Others wanted a judge to find members of the Sackler family criminally liable — something Lane said was beyond the scope of bankruptcy court, but the settlement does not prevent prosecutors from continuing to investigate.
A Florida woman whose husband struggled with addiction after being prescribed OxyContin following an accident told a court the deal wasn't enough.
“The natural laws of karma dictate that the Sacklers and Purdue Pharma must pay for what they did,” Pamela Bartz Halaszak said in a video.
The spate of lawsuits filed by government agencies against Purdue and other drug makers, drug wholesalers and pharmacy chains began about a decade ago.
Most of the larger ones have already decided totaling about $50 billion, with most of the money going to combat the opioid crisis.
Purdue's deal is among the largest. Members of the Sackler family will have to pay up to $7 billion and give up ownership of the company. Neither of them served on the board of directors or received payments since 2018. similar hearing four years agono one was called to testify at this week's hearing.
The company will receive a name change and new executives who will use future profits to fight the opioid crisis.
There are also some non-financial provisions. Some members of the Sackler family will be required to divest from companies that sell opioids in other countries.
Family members will also be prohibited from adding their names to institutions in exchange for charitable donations. Name has already been removed from museums and universities.
And company documents, including many that are typically subject to attorney-client privilege, must be made public.
Unlike other large opioid settlements, those harmed by Purdue products will be in line to receive some money as part of the settlement. About $850 million will be allocated for them, of which more than $100 million will be allocated to help children born with opioid withdrawal syndrome.
About 139 thousand people have active claims for money. However, many of them did not provide evidence that they were prescribed Purdue opioids and would not receive anything. Lawyers expect those who had prescriptions for at least six months to receive about $16,000 each, while those who had them for a shorter period will receive about $8,000. Legal fees will reduce what people actually receive.
One woman, whose family member suffered from opioid addiction, told the court via video Thursday that the agreement does not help people with substance use disorders.
“Tell me guys how can you sleep at night knowing that people will get so little money that they won't be able to do anything with it,” asked Lauryn Ferrante of Staten Island, New York.
Most of the money will go to state and local governments to be used in their efforts to mitigate the damage from the opioid epidemic. Overdose deaths are falling Experts believe the decline over the past few years is partly due to the influence of settlement dollars.
