The Register Citizen (Torrington, CT)
Opioid talks at an impasse
Purdue Pharma expected to file for bankruptcy
CLEVELAND — OxyContin maker Purdue Pharma is expected to file for bankruptcy after settlement talks over the nation’s deadly overdose crisis hit an impasse, attorneys general involved in the talks said Saturday in a message to their counterparts across the country.
The breakdown puts the first federal trial over the opioid epidemic on track to begin next month and sets the stage for a complex legal drama involving nearly every state and 2,000 local governments.
Purdue; its owners, the Sackler family; and a group of state attorneys general had been trying for months to find a way to avoid trial and determine Purdue’s responsibility for a crisis that has cost 400,000 American lives over the past two decades.
The email from the attorneys general of Tennessee and North Carolina, obtained by The Associated Press, said that Purdue and the Sacklers had rejected two offers from the states over how payments under any settlement would be handled and that the family declined to offer counterproposals.
“As a result, the negotiations are at an impasse, and we expect Purdue to file for bankruptcy protection imminently,” Tennessee Attorney General Herbert Slatery and North Carolina Attorney General Josh Stein
wrote in their message, which was sent to update attorneys general throughout the country on the status of the talks.
Purdue spokeswoman Josephine Martin said, “Purdue declines to comment on that in its entirety.”
A failure in negotiations sets up one of the most complex legal dramas in the nation’s history. It would leave virtually every state and some 2,000 local governments that have sued Purdue to battle it out in bankruptcy court for the company’s remaining assets. Purdue threatened to file for bankruptcy earlier this year and was holding off while negotiations continued.
It’s not entirely clear what a breakdown in settlement talks with Purdue means for the Sackler family, which is being sued separately by at least 17 states.
Those lawsuits are likely to continue but face a significant hurdle because it’s believed the family — major donors to museums and other cultural institutions around the world — has transferred most of its multibilliondollar fortune overseas.
In March, Purdue and members of the Sackler family reached a $270 million settlement with Oklahoma to avoid a trial on the toll of opioids there. The Sacklers could not immediately be reached for comment Saturday.
Under one earlier proposed settlement, Purdue would enter a structured bankruptcy that could be worth $10 billion to $12 billion over time. Included in the total would be $3 billion from the Sackler family, which would give up its control of Purdue and contribute up to $1.5 billion more by selling another company it owns, Cambridge, Englandbased Mundipharma.
In their latest offers, the states sought more assurances that the $4.5 billion from the Sacklers would actually be paid, according to the message circulated Saturday: “The Sacklers refused to budge.”
In their message, Tennessee’s Slatery and North Carolina’s Stein said the states have already begun preparations for handling bankruptcy proceedings.
“Like you, we plan to continue our work to ensure that the Sacklers, Purdue and other drug companies pay for drug addiction treatment and other remedies to help clean up the mess we allege they created,” they wrote.
OxyContin maker Purdue Pharma is expected to file for bankruptcy after settlement talks over the nation’s deadly overdose crisis hit an impasse, attorneys general involved in the talks said Saturday in a message to their counterparts across the country.
The breakdown puts the first federal trial over the opioid epidemic on track to begin next month and sets the state for a complex legal drama involving more than 30 states and 2,000 local governments.
Purdue, its owners, the Sackler family, and a group of state attorneys general had been trying for months to find a way to avoid trial and determine Purdue’s responsibility for a crisis that has cost 400,000 American lives over the past two decades.
The email from the attorneys general of Tennessee and North Carolina, obtained by The Associated Press, said that Purdue and the Sacklers had rejected two offers from the states over how payments under any settlement would be handled and that the family declined to offer counterproposals.
“As a result, the negotiations are at an impasse, and we expect Purdue to file for bankruptcy protection imminently,” Tennessee Attorney General Herbert Slatery and North Carolina Attorney General Josh Stein wrote in their message, which was sent to update attorneys general throughout the country on the status of the talks.
Purdue spokeswoman Josephine Martin said, “Purdue declines to comment on that in its entirety.”
A failure in negotiations sets the stage for one of the most complex legal dramas in the nation’s history. It would leave virtually every state and some 2,000 local governments that have sued Purdue to battle it out in bankruptcy court for the company’s remaining assets. Purdue threatened to file for bankruptcy earlier this year and was holding off while negotiations continued.
It’s not entirely clear what a breakdown in settlement talks with Purdue means for the Sackler family, which is being sued separately by at least 17 states.
Those lawsuits are likely to continue but face a significant hurdle because it’s believed the family — major donors to museums and other cultural institutions around the world — has transferred most of its multibilliondollar fortune overseas.
In March, Purdue and members of the Sackler family reached a $270 million settlement with Oklahoma to avoid a trial on the toll of opioids there. The Sacklers could not immediately be reached for comment on Saturday.
Under one earlier proposed settlement, Purdue would enter a structured bankruptcy that could be worth $10 billion to $12 billion over time. Included in the total would be $3 billion from the Sackler family, which would give up its control of Purdue and contribute up to $1.5 billion more by selling another company it owns, Cambridge, Englandbased Mundipharma.
In their latest offers, the states sought more assurances that the $4.5 billion from the Sacklers would actually be paid, according to the message circulated Saturday: “The Sacklers refused to budge.”
In their message, Tennessee’s Slatery and North Carolina’s Stein said the states have already begun preparations for handling bankruptcy proceedings.
“Like you, we plan to continue our work to ensure that the Sacklers, Purdue and other drug companies pay for drug addiction treatment and other remedies to help clean up the mess we allege they created,” they wrote.