Purdue's Sacklers Propose $6B Opioid Settlement

The Sackler family, owners of Purdue Pharma LP have proposed a new and larger settlement worth up to $6 billion to resolve allegations that the OxyContin maker and its owners contributed to the deadly US opioid epidemic, a mediator's report showed on Friday, Dietrich Knauth, and Tom Hals reported for Reuters.

Photo Insert: A screenshot of the deposition of Dr. Richard Sackler, conducted by the state of Kentucky

The mediator, US Bankruptcy Judge Shelley Chapman, has been overseeing talks between Sackler family members and eight states and the District of Columbia. US District Judge Colleen McMahon in December blocked an earlier $4.33 billion proposed settlement that would have legally shielded the family members, a decision that threatened to upend Purdue's bankruptcy reorganization.

Purdue, maker of the highly addictive OxyContin opioid pain drug, filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing it and Sackler family members of fueling the opioid epidemic through deceptive marketing.

The Sackler family members are trying to win support for a new settlement that could allow Stamford, Connecticut-based Purdue to emerge from bankruptcy.

The proposed framework would add at least $1.175 billion in cash, plus up to $500 million in proceeds from the sale of other companies owned by the family members, according to the mediator. While the agreement is not final, the mediator revealed the framework under discussion for the first time on Friday.

All of the funds would be directed toward abatement of the opioid crisis, including support and services for survivors, victims, and their families, according to Chapman. "We remain focused on achieving our goal of providing urgently needed funds to the American people for opioid crisis abatement," Purdue said in a statement.

"We believe a global settlement is the swiftest and most cost-effective exit path from Chapter 11 and we will continue working to build consensus."

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