OxyContin’s Bankrupt Manufacturer Warns of Expensive Litigation Risk

A lawyer for Purdue Pharma said Monday that a judge needs to accept the OxyContin maker’s plan to settle thousands of lawsuits over the opioid epidemic or face “years or decades of Hobbesian hell” with complicated litigation that would not result in fair payouts to abate the epidemic or pay individual victims.

Marshall Huebner, a lawyer for Purdue, made his case during an ongoing videoconference hearing to U.S. Bankruptcy Judge Robert Drain, who expects to rule this week on whether to accept the Stamford, Connecticut-based company’s reorganization plan.

State and local governments and individual victims who cast ballots on the plan supported it overwhelmingly. But nine states, the District of Columbia, the city of Seattle and the U.S. Bankruptcy Trustee are fighting the plan because it would protect members of the Sackler family who own the company from future lawsuits over opioids.

Huebner said that allowing suits to go ahead against members of the wealthy family “would be a fight that would be long, hard-fought, uncertain and incredibly expensive.”

And if some places won billions in judgments against family members, Huebner said, that could leave nothing for the rest of the U.S.

He also noted that suing Sackler families is complicated. The family is stretched across the world, with some assets held in foreign trusts. And many family members have never been involved with Purdue.

In exchange for the legal protections, family members would contribute a total of $4.5 billion in cash and control of a charitable fund. They would give up ownership of Purdue, and the company would be reformed into a new entity with its profits going to fight the epidemic and pay victims and their families.

Most of the funds sent to government entities would have to be used to combat opioids via projects such as connecting people with treatment programs, and opioid use prevention. And most people with claims that are found valid are expected to receive between $3,500 and $48,000.

Some parties in the cases also agreed Monday to changes in the details of the settlement.

While members of the Sackler families would still be protected from lawsuits related to opioids, they would be allowed to face litigation over other Purdue products and actions. Also, contractors and advisers would no longer receive protections from certain civil claims over opioids, which have been linked to more than 500,000 deaths in the U.S. since 2000.

You can’t even go to the medicine cabinet without running into a legal dispute. They’re everywhere! And when those annoying things negatively impact you and/or your business including bankruptcies, landlord/tenant matters including unlawful detainers, contract issues, nuisance ADA claims and even collections, call in your good guy business litigator, Dean Sperling to resolve YOUR matter with YOUR best interests in mind!

A lawyer for Purdue Pharma said Monday that a judge needs to accept the OxyContin maker’s plan to settle thousands of lawsuits over the opioid epidemic or face “years or decades of Hobbesian hell” with complicated litigation that would not result in fair payouts to abate the epidemic or pay individual victims.

Marshall Huebner, a lawyer for Purdue, made his case during an ongoing videoconference hearing to U.S. Bankruptcy Judge Robert Drain, who expects to rule this week on whether to accept the Stamford, Connecticut-based company’s reorganization plan.

State and local governments and individual victims who cast ballots on the plan supported it overwhelmingly. But nine states, the District of Columbia, the city of Seattle and the U.S. Bankruptcy Trustee are fighting the plan because it would protect members of the Sackler family who own the company from future lawsuits over opioids.

Huebner said that allowing suits to go ahead against members of the wealthy family “would be a fight that would be long, hard-fought, uncertain and incredibly expensive.”

And if some places won billions in judgments against family members, Huebner said, that could leave nothing for the rest of the U.S.

He also noted that suing Sackler families is complicated. The family is stretched across the world, with some assets held in foreign trusts. And many family members have never been involved with Purdue.

In exchange for the legal protections, family members would contribute a total of $4.5 billion in cash and control of a charitable fund. They would give up ownership of Purdue, and the company would be reformed into a new entity with its profits going to fight the epidemic and pay victims and their families.

Most of the funds sent to government entities would have to be used to combat opioids via projects such as connecting people with treatment programs, and opioid use prevention. And most people with claims that are found valid are expected to receive between $3,500 and $48,000.

Some parties in the cases also agreed Monday to changes in the details of the settlement.

While members of the Sackler families would still be protected from lawsuits related to opioids, they would be allowed to face litigation over other Purdue products and actions. Also, contractors and advisers would no longer receive protections from certain civil claims over opioids, which have been linked to more than 500,000 deaths in the U.S. since 2000.

You can’t even go to the medicine cabinet without running into a legal dispute. They’re everywhere! And when those annoying things negatively impact you and/or your business including bankruptcies, landlord/tenant matters including unlawful detainers, contract issues, nuisance ADA claims and even collections, call in your good guy business litigator, Dean Sperling to resolve YOUR matter with YOUR best interests in mind!

More on the case:
https://www.yourcentralvalley.com/news/u-s-world/oxycontin-makers-lawyer-warns-of-long-expensive-litigation/