Today's Edition
NEW YORK (AFP)
A US bankruptcy judge on Tuesday formally approved OxyContin maker Purdue Pharma's plan to settle thousands of lawsuits over the harms of opioids.
The plan ends the Sackler family's control of Purdue and ability to sell opioids in the United States.
Under the $7.4 billion settlement several US states reached earlier this year with the Sackler family and Purdue, the company they owned for decades, funds will also be routed to affected communities and individuals.
"This plan is not perfect," Federal judge Sean Lane said on Tuesday. "The court wishes it could do more to ease the suffering of victims in the opioid crisis."
Purdue and other opioid makers and distributors had been accused of encouraging free-wheeling prescription of their products through aggressive marketing tactics while hiding how addictive the drugs are.
The Sacklers are set to pay $6.5-7.0 billion while the company will pay $900 million.
A separate fund of $865 million will be created to compensate victims.
The remnants of Purdue will become Knoa Pharma, a public benefit company, that will provide opioid use disorder treatments and overdose reversal medicines.
"For decades, the Sacklers ran Purdue with one goal in mind: maximising profits for their family, no matter the cost," said New York Attorney General Letitia James.
"While no amount of money will ever fully reverse the damage they caused, securing this bankruptcy plan brings us one step closer to delivering critical funding to communities impacted by the opioid crisis," James added.
Tuesday's approval marks a significant step in finalising the $7.4 billion settlement.
