New Haven Register (New Haven, CT)
Purdue, state at odds on deadline
STAMFORD — In response to the coronavirus crisis, OxyContin maker Purdue Pharma and two dozen states including Connecticut have submitted competing proposals for pushing back the June 30 claims-filing deadline for individuals who believe they were harmed by the company’s opioids.
Connecticut and the 23 other “non-consenting” states that have not yet agreed to settlement terms with Purdue filed last week a memorandum in federal bankruptcy court that advocates changing the deadline to Sept. 30, siding with a number of advocates for opioid victims who have submitted letters in the past month making the same proposal.
“For individuals, the disruption caused by the pandemic is also extraordinary. Even for those not sickened by the virus, the burden of compliance with social distancing orders is high, especially for individuals and families battling substance-use disorder or in recovery,” the states said in their brief. “Everyone is necessarily focused on dealing with health and safety first. Access to attorneys, records and other resources for filing claims has been made more difficult, if not impossible, by the crisis.”
Purdue officials responded that a 30-day extension would suffice in dealing with the pandemic’s disruption.
After having allocated approximately $24 million for a national advertising campaign notifying people about the claims filing window that was launched in February, the company estimates it would incur another $700,000 for the notices if the deadline were moved to July 30. An extension to Sept. 30 would triple the outlay for additional advertising, it said.
Through online, TV, radio and print outlets and other platforms including billboards and movie theaters, the advertising is designed to reach 95 percent of adults in the U.S. an average of six times. Purdue said it is on track to meet, if not exceed, its targets.
Among other key parties in the bankruptcy proceedings, the Ad Hoc Group of Individual Victims of Purdue would prefer to maintain the June 30 deadline, but it would accept Purdue’s plan, according to Edward Neiger, a Manhattan-based attorney who represents the group.
Regardless of the deadline, the group wants a provision that would allow late filings by those affected by the pandemic.
In an interview Wednesday, Neiger said he agreed with the nonconsenting states that the crisis has acutely affected those who are battling opioid addiction. “However, the victims also can’t afford to delay the bankruptcy at all,” because any deadline extension would slow the process that would lead to a settlement and disbursement of funds, Neiger said.
Other groups have expressed concerns about COVID-19’s impact.
“Our organization has been working to aggregate useful information and resources for those filing a claim with your court,” Harrison Cullen, a researcher and member of Prescription Addiction Intervention Now, a nonprofit founded in response to the opioid crisis, said in a May 6 letter. “In doing so, I have seen the difficulty many have in understanding their rights and engaging with the bankruptcy process — especially so, given the limitations of shelter-inplace ordinances across the country.”
The proposed deadline changes are scheduled to be heard by Judge Robert Drain during a June 3 hearing held by phone.
As of May 21, approximately 6,800 personal-injury forms had been filed, while about 4,200 potential personal-injury claims had been filed with other forms, according to the Prime Clerk website that collects Purdue’s bankruptcy records. Connecticut accounted for 163 submissions.
In addition, more than 27,000 people represented by the Ad Hoc Group of Individual Victims are planning to file claims, according to Neiger.
Private citizens’ claims would be resolved alongside the approximately 3,000 lawsuits filed against Purdue by local and state governments that allege the company fueled the opioid crisis with deceptive OxyContin marketing. Purdue denies those accusations.
The individual payouts would not change the total settlement value, which Purdue has pegged at more than $10 billion. The total amount paid out to individuals would be determined through the bankruptcy process.
About two-dozen states have accepted the company’s proposed settlement, which was announced when the company filed for bankruptcy last September.
But any comprehensive settlement would also require the support of the non-consenting states. Connecticut Attorney General William Tong has expressed doubts about the feasibility of Purdue’s plan and said it does not go far enough to tackle the opioid crisis. He has not said publicly how much he thinks the company should pay.