Purdue Pharma owners reportedly willing to surrender company, pay up to $4.5B more to settle suits

Automatic TRANSCRIPT

Morning the owners of Purdue pharma are just about ready to surrender it the company that makes oxycontin reached a tentative deal that would settle thousands of lawsuits stemming from the opioid crisis houses that might work let's find out from north country public radio's Brian man who follows opioid litigation for NPR Brian good morning hi Steve what are the tentative terms so here's what it looks like the Sackler's would give up control of Purdue pharma the company would go through a structured bankruptcy all the sad news that the billion or family that is controlled Purdue pharma for a long time right going gone that's exactly right so we knew from would be created to any revenue from future sales of oxycontin would go to help communities struggling with the addiction crisis soccer's would also give up three billion dollars in cash and contribute money from the sales of an overseas subsidiary Paul Hanley help negotiate this deal on behalf of local governments around the U. S. and I asked him if this penalizes the Sackler family enough financially for their role pushing opioid sales we are certainly believe based on representations made to us by their counsel that these are numbers that represent a significant portion of of what the shock we shop bailable. it's clear though here Steve is that even after the settlement the Sackler's will remain one of the richest families in America and they're also doesn't appear to be any admission of wrongdoing I guess that explains why New York state's Attorney General among others are very unhappy with the settlement. yeah we've seen a really fierce response from attorneys general around the country Connecticut Massachusetts and other states of the soccer family is hugely controversial a lot of evidence that they played a big role in pushing opioid sales over the year at years and remember you know two hundred thousand people have died and now there is a very real prospect that members of the family will walk away fabulously wealthy because of oxycontin sales well you have some states are even half the states were to reject this deal does the deal still go through and is it a settlement. yeah this is going to go to bankruptcy court and there could be a whole lot more litigation in negotiations there if these states refused to get on board billions of dollars going to flow from this and whenever there's that much money there's going to be a big fight there's no formula for dividing up the cash meanwhile the one thing that's interesting here is the state attorneys general even more of them now are promising to continue suing the sector family directly going after that personal wealth even after this company produ pharmacy says to exist well I'm curious about that wouldn't this settlement to affectively preclude other lawsuits and if it didn't when the Sackler's be refusing to sign off at all well that's gonna be an interesting question in fact these attorneys general say that they think they can pursue the Sackler's and the money that they pulled out of this company over the years a lot of the litigation focuses exactly on that question what happens now with thousands of other lawsuits that focus on other pharmaceutical companies and distributors and pharmacy chains and everybody else right negotiations going on right now with other big drug companies name plan companies like Johnson and Johnson the federal trial is scheduled for next month in Ohio so there's pressure to get more of these deals done one other big development Steve that happened yesterday is that the federal judge overseeing that federal case damn poster he approved a massive expansion of local governments included in his case it now involves tens of thousands of cities and counties other local jurisdictions they all have a stake now and how this litigation plays out so the pharmaceutical industry's financial liability for this epidemic is still potentially massive Brian thanks for your close attention to all

Coming up next