Purdue Pharma proposes $10 billion plan to come out of bankruptcy

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Pharma the maker of oxycontin filed. Its long bankruptcy plan just before midnight last night in a federal court right. So here's the plan. The company itself will be dissolved. A new organization will be created that would direct profits to help people who were hurt by the opioid epidemic but two dozen states came right out and they rejected that plan. They say it doesn't hold the sackler family which owns purdue pharma accountable. Let's bring bringing. Npr's addiction correspondent. Brian man Brian what does purdue pharma savings. This plan will do the company's president a he's a guy named steve miller and he says this new company that will be created from the ashes of purdue farmable essentially exist to benefit the public. The sackler will have no role or ownership going forward and over time. This new firm will generate hundreds of millions of dollars much of it from selling oxycontin which they say they can do ethically and safely. They'll also produce other medicines that will help people with opioid addiction. According to purdue pharma the total value over time To thousands of creditors will be billions of dollars and members of the sackler family also issued a statement last night. They said this plan offers. And i'm quoting here. An important step forward helping those who suffer from addiction. Okay but wire so many states unhappy about this a lot of reasons but a big complaint is from state attorney general most of them democrats who say that purdue pharma and its owners the sackler only offering up about five hundred million dollars right up front the rest of the cash payments including four point. Two billion dollars promised by the sackler themselves. All that money would be spread out in installments. Paid over most of the next decade that really angers critics like more healey. She's attorney general in massachusetts. What the are offering essentially as a way for the payments to be structured. That makes it convenient for them. They get to keep their billions and bank accounts and make money and use the to pay. You know the states out over time while they're oxycontin or chin keeps growly and there's another row bay for critics and it's affected a lot of the ten billion dollars in value. Promise by purdue pharma in this deal doesn't actually come in the form of cash that communities desperately need to pay for things like addiction programs in public health instead. This plan would provide low cost addiction treatment drugs like buprenorphine and lock zone which the new spin off company would make and sell at a discount. Then what happens to the sackler here. Because if the federal bankruptcy court approves this plan i mean they feel any personal thing at all. This is a really big question. After launching oxycontin and claiming it was safer than opioids other opioids the sackler and their company hauled in more than thirty dollars in revenue. Purdue pharma has since pleaded guilty twice to federal criminal charges for their marketing of opioids researchers say oxycontin contributed to this explosion of opioid addiction and death. Now the actors have agreed to give up control of their company. But some critics point out that purdue pharma was already sinking under the crush of all these lawsuits. So it's not clear how big a financial sacrifice that really is. Members of the family also added about a billion dollars to the earlier settlement offer. They made but in this deal they will keep most of their personal fortunes and they'll admit no

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