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Home / Insurance / Sacklers Increases Opioid Settlement Offer to $ 4.3 Billion: Sources

Sacklers Increases Opioid Settlement Offer to $ 4.3 Billion: Sources



(Reuters) – Members of the Sackler family who own Purdue Pharma LP have offered about $ 4.3 billion to resolve disputed opioid disputes, up from $ 3 billion originally proposed in conciliation discussions pending in the OxyContin manufacturer's bankruptcy proceedings. four people who are familiar with the matter said.

Sackler's family members are now willing to contribute $ 4.275 billion to help resolve some 3,000 lawsuits brought by American communities trying to hold them and Purdue accountable for damages caused by the opioid epidemic, the sources said.

Purdue and Sacklers' representatives did not comment or respond immediately to requests.

Details of a far-reaching settlement could be described in a Purdue reorganization plan to be submitted to a US bankruptcy court next week. Purdue filed for bankruptcy in 201

9 ahead of an attack on opioid disputes. In November, the company in Stamford, Connecticut, acknowledged liability for three crimes that arose through its marketing of prescription opioid painkillers.

A previously proposed solution that Purdue values ​​at more than $ 10 billion guaranteed $ 3 billion from Sacklers over seven years, with additional funds from family members depending on the sale of other international companies they own. That offer as a practical matter was reduced to $ 2.775 billion after Sacklers agreed to a $ 225 million civil penalty to settle a civil investigation.

Under the latest proposal, Sacklers could still use the proceeds from the sale of these companies to cover the higher payout of $ 4.275 billion, but would have to make a profit regardless. It is not clear how long Sacklers would take to pay the proposed higher amount, but it would likely be a period of years, sources said.

Settlement negotiations are ongoing and no final agreement, including how much Sacklers will pay, has yet been reached among family members, Purdue and American communities suing over the opioid crisis.

Elsewhere in the conciliation negotiations, some disputes have put pressure on Purdue to explore a sale instead of a current proposal to dissolve itself. and transfer assets to a public utility or similar entity operated on behalf of the plaintiff and no longer controlled by Sacklers, say two people familiar with the matter. Advocates General from two dozen states and Washington, DC, have opposed that plan. in order for the new entity to continue selling OxyContin, which they believe to have wrongly enchanted them with the addictive painkiller.

In November, Purdue pleaded guilty to defrauding U.S. officials and the PA of providing illegal backlash to both doctors and an electronic healthcare provider.

The company totaled $ 8.3 billion in criminal and civil penalties to resolve U.S. Department of Justice probes, most of which will go unpaid. A $ 3.54 billion criminal penalty and a $ 2.8 billion civil penalty will be considered, along with trillions of dollars in bad debts, as part of Purdue's bankruptcy proceedings.

Purdue agreed to pay $ 225 million for a $ 2 billion criminal confiscation, with the Department of Justice above the rest if the company's bankruptcy reorganization creates a public utility or similar entity that controls the remaining $ 1.775 billion to US communities to fight the opioid crisis .

Sackler's family members have not been charged. They agreed to pay a $ 225 million penalty fee for allegedly causing false claims on OxyContin to state health care programs such as Medicare. They have denied the allegations.

The opioid epidemic has claimed the lives of approximately 450,000 people across the United States since 1999 due to overdoses of prescription painkillers and illegal drugs such as heroin and fentanyl, according to the US Centers for Disease Control and Prevention.

Purdue's bankruptcy application stopped disputes against the company and its Sackler family owners. Since then, the company has worked to propose a reorganization plan that would serve as a plan to resolve the thousands of outstanding lawsuits.

Purdue's proposal to settle cases in a deal it values ​​worth more than $ 10 billion is largely dependent on future donations. of drugs for overdose and addiction treatment that the company has under development.

How much Sacklers will contribute has long been a key point in the negotiations between family members, Purdue and the plaintiff. Many states rejected their original $ 3 billion offer as too low. Catalog

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