Purdue Pharma's $7.4 Billion Settlement Gains Broad Support
Purdue Pharma has secured the backing of 55 U.S. states and territories for a $7.4 billion settlement to address numerous opioid lawsuits. This settlement, involving payments from the Sackler family and Purdue, aims to resolve claims tied to the opioid crisis, providing payouts to affected communities and individuals.
Purdue Pharma has garnered the approval of attorneys general representing 55 U.S. states and territories for its proposed $7.4 billion settlement, designed to settle extensive opioid litigation against the company and its owners, the Sackler family. Initiated in January, the settlement framework promises to aid Purdue in obtaining court consent for its bankruptcy reorganization.
The settlement funds comprise $6.5 billion from the Sacklers and $900 million from Purdue Pharma, targeting allegations that OxyContin fueled an opioid addiction crisis nationwide. Once credible creditor endorsement is achieved for its Chapter 11 plan, payouts will commence to individuals, governments, and tribes, with the Sacklers relinquishing control of Purdue.
However, Oklahoma remains outside Monday's agreements, having settled with Purdue and the Sacklers for $270 million in 2019. The U.S. Supreme Court earlier dismissed a settlement that sought to provide the Sacklers with broad immunity from lawsuits, indicating ongoing legal complexities in the nationwide opioid litigation.
(With inputs from agencies.)
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