The Sakler family will relinquish ownership of Purdue Pharma, the company blames much of the opioid epidemic and will pay $ 3 billion of its own money subject to an agreement to resolve thousands of federal and state cases, according to a person familiar with the negotiations .
Discussions continue for months as Purdue and the Saclera seek to prevent new lawsuits against individual family members and their company.
If all parties agree and the Agreement is completed, Purdue will be the first among about two dozen prescription opioid manufacturers, distributors, and dealers to litigate all its claims against it for its role in the public crisis health that has killed hundreds of thousands in the past two decades.
But this would not be a direct cash payment. The bulk of the funding will come from the restructuring of the Chapter 11 bankruptcy company, which will turn it from a private company into a "public beneficiary trust". This would allow the profits from all drug sales, including the opioid analgesic OxyContin, to go to claimants – largely states, cities, cities and tribes.
In addition, the company will provide free drug treatment for addiction treatment. These drugs are currently under development and have received a quick review of the review status by the Food and Drug Administration. These include opioid craving pills and over-the-counter nasal spray to reverse the overdose.
The value of profits from new trust and drug donations is estimated at a total value of between $ 7 and $ 8 billion.
In addition to paying $ 3 billion in cash, Sacklers will sell another drug company they own, Mundipharma, and give an additional $ 1.5 billion in proceeds.
Settlement negotiations were first reported by NBC. Purdue emailed a statement in response to the reports: "While Purdue Pharma is ready to vigorously defend itself in opioid litigation, the company has made it clear that it sees little good coming from years of tedious litigation and appeals. People and communities affected by the opioid crisis need help now. Purdy believes that a constructive global resolution is the best way forward and the company is actively working with state attorneys general and other claimants to achieve this result. ”
The Saclars declined to comment.
Maura Heli, a Massachusetts attorney general who filed the first state lawsuit against individual members of the Sackler family, declined to comment on the content of the settlement negotiations.
Negotiation negotiations have been underway for months, largely at the request of Judge Dan Polster, a federal judge in Cleveland, who oversees about 2,000 lawsuits against local authorities against companies in the opioid industry.
Purdue wants to reach what is called a global agreement – an all-party agreement that will terminate lawsuits. In order to achieve this, the two states whose cases are brought by their respective attorneys and the federal claimants will have to come to a single agreement with Purdue.
The framework for the agreement and which claimants will sign it are still in flux. People familiar with the discussions expressed concern that the news had expired at 11 a.m., just before participants reported on Judge Polster's condition on Friday. Some worry that the public may even compromise sensitive conversations.
Judge Polster instructed all participants not to speak to anyone outside the content negotiations.
The Plaintiffs' Executive Committee issued a brief statement to the New York Times: "According to Judge Polster's confidentiality order, which we will abide by, we cannot speak publicly to any speculation or media reports regarding the negotiation of disputes with the defendants against whom we're preparing for federal court this fall. " have been in the negotiation talks. What remains to be seen is whether the other 38 or so claim to have agreed. It is also in the air whether a larger group of 34,000 cities and counties that have not yet filed cases will agree to be bound by this framework.
If the agreement can be finalized, Purdue will immediately file for bankruptcy and be supervised by a bankruptcy judge. The judge will appoint three independent trustees, who in turn will appoint a board of directors for the new trust of the public beneficiaries. Independent trustees and the board will make all decisions on how to manage the proceeds of Purdue's business.
Although Purdue has a relatively small share of the United States opioid market, the introduction of the OxyContin prescription painkiller in 1996 and widespread sales tactics are seen as initiating a two-decade slide toward opioid dependence .
As early as 2007, Purdue and three top executives pleaded guilty in federal court to criminal charges for misleading regulators, physicians and patients for the risk of drug abuse and its potential to be misused. But despite paying a $ 600 million fine, the company continued to aggressively promote the drug, reducing its risk and reselling its benefits.