Sacklers ‘close’ to deal to bring in extra cash in opioid settlement | Business

0
Michael Nigro/Pacific Press/LightRocket via Getty Images, FILE

(NEW YORK) — The Purdue Pharma-owning family is “close” to a deal that dramatically increases its financial contribution to a nationwide opioid settlement, according to a new court filing.

The case for Judge Shelley Chapman, who is arbitrating a dispute between Purdue Pharma and states that opposed its bankruptcy reorganization plan, has asked for an extra week to reach an agreement. Tuesday had been the original deadline.

Descendants of Raymond and Mortimer Sackler initially agreed to contribute $4 billion to resolve private and public claims against the bankrupt maker of OxyContin and fund opioid relief and education programs.

“The mediating parties are close to an agreement in principle that provides substantial additional consideration to the $4.325 billion provided for in the plan – an additional amount that would be used exclusively for alleviating the opioid crisis and issues related,” the folder says. .

A deal could end a legal challenge that has prevented Purdue Pharma from emerging from bankruptcy and reconstituting itself as a public benefit company.

“The proposed settlement requires the agreement of all parties to the mediation. In order to conclude negotiations and resolve a number of outstanding issues, the mediator respectfully requests an extension of the termination date to February 7, 2022” , indicates the folder.

The mediator’s brief describes intense negotiation sessions, including dozens of phone calls, “hundreds of emails and text messages” and two days of in-person mediation on January 25 and 26 that each lasted more than 12 hours.

The initial reorganization plan was spread over two years. Members of the Sackler families agreed to contribute $4 billion and relinquish ownership of Purdue, which would become a new company whose profits would be used to tackle the opioid crisis.

In exchange for the contributions, the Sackler family members were protected from opioid lawsuits.

Approval of this plan was overturned by a federal judge because it released the Sacklers from legal liability even though they were not part of the bankruptcy.

Eight opposing states also argued that the $4 billion was insufficient to hold members of the Sackler family accountable. They denied wrongdoing.

Copyright © 2022, ABC Audio. All rights reserved.

Share.

Comments are closed.