Critics say the state would be entitled to an estimated $21.6 million, but that’s not enough.
Objections to a landmark agreement with Purdue Pharma are mounting as appeals, with Rhode Island’s attorney general, said Wednesday that the plan does not hold the OxyContin maker or its owners accountable for their role in sparking the outbreak. opioid crisis.
Rhode Island Appealed in US Bankruptcy Court on Tuesday New York. A separate appeal has already been filed by the US Bankruptcy Trustee, california, connecticut, District of Columbia, Maryland and Washington states, as well as some Canadian local governments and other Canadian entities.
Family angry, disputed over deal with Oxycontin maker Purdue Pharma
Any successful appeal can undo the deal, not just that state’s share.
Rhode Island Attorney General Peter Neronha, a democrat, said it does not accept that the resolution between Purdue Pharma and thousands of state and local governments is substantial. The Sackler family has not been transparent about their assets, he said, so it’s difficult to calculate how much punishment any resolution would entail.
Estimates put the collective wealth of family members who own the company at more than $10 billion.
Neronha also said that she disliked that the settlement protects Sacklers from lawsuits over opioids.
He said the state would be entitled to an estimated $21.6 million over nine years, or about $2.4 million annually.
“It’s not a lot,” Neronha said. “It may sound like a lot, I suppose, but it’s not a lot, given the scope of the problem, both past, present and future.”
OxyContin Maker Purdue Pharma Corrected by Opioid Settlement Judge
A federal bankruptcy judge this month approved a plan to transform Stamford, Connecticut-based Purdue into a new company no longer owned by members of the Sackler family, whose profits are going to fight the opioid epidemic. .
The deal settles some 3,000 lawsuits filed by state and local governments, Native American tribes, unions, hospitals and others who claimed the company’s marketing of prescription opioids helped spark and lead to an overdose. The pandemic continued.
Company profits and $4.5 billion in cash and charitable assets from members of the Sackler family will be used to pay certain individual victims and help with opioid treatment and prevention programs.
Members of the Sackler family have said that while they dispute the allegations made about their family, they “took this path to help deal with a serious and complex public health crisis.”
Purdue has said the settlement prevents “years of value-destroying litigation” and ensures that billions of dollars will be used to help people and communities hurt by the opioid crisis.
Purdue said in an email Wednesday that the bankruptcy court and most of its creditors believe agreement is the only way to fund programs to end the opioid crisis.
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“The appeal will further harm the states, victims and creditors by delaying and destroying their recovery,” the email said. “Now is the time for the remaining objectors to join the overwhelming majority of creditors so that the billions of dollars can begin to flow as quickly as possible.”
Rhode Island’s case against opioid makers is set for hearing in state court in January. But the state’s claims against Purdue and all others were put on hold when the company filed for bankruptcy two years ago. The state’s only hope of being able to proceed with the claim against the company would be to win the appeal.