Latest opioid settlement plan with OxyContin maker Purdue and Sackler family getting few objections

NEW YORK– Lawyers representing OxyContin maker Purdue Pharma, the branches of the Sackler family that own it, cities, states, counties, Native American tribes, addicted people and others across the United States are expected to deliver a nearly unanimous message to a bankruptcy court judge on Friday: approve a plan to settle thousands of opioid-related lawsuits against the company.

If U.S. Bankruptcy Judge Sean Lane sticks, it will close a long chapter — and perhaps the entire book — on a legal odyssey about efforts to hold the company accountable for its role in an opioid crisis linked to 900,000 U.S. deaths since 1999, including deaths from heroin and illicit fentanyl.

Closing arguments were expected Friday, the third day of a hearing on a bankruptcy plan for the company, which filed for protection six years ago as it faced lawsuits with claims worth trillions of dollars.

The saga has been emotional and full of contentious arguments among the many groups that have sued Purdue, often revealing a possible disconnect between the quest for justice and the practical role of the bankruptcy court.

The U.S. Supreme Court rejected a previous settlement, finding it inappropriate for members of the Sackler family to receive immunity from opioid lawsuits. Under the new arrangement, entities that do not accept the settlement can sue them. Family members are collectively worth billions, but much of their assets are held in trusts in offshore accounts that would be difficult to access through legal action.

This time, the government groups involved reached an even broader consensus and opposition from individuals was mostly moderate. Of more than 54,000 personal injury victims who voted on whether the plan should be accepted. only 218 said no. More people in this group did not vote.

A handful of opponents spoke at the hearing Thursday, sometimes interrupting the judge. Some said only victims, not states and other government entities, should receive settlement funds. Others wanted the judge to find members of the Sackler family criminally liable — which Lane said is beyond the scope of the bankruptcy court, but that the settlement would not prevent prosecutors from pursuing the case.

A Florida woman whose husband suffered from addiction after being given OxyContin following an accident told the court the agreement was not enough.

“The natural laws of karma suggest that the Sacklers and Purdue Pharma should pay for what they did,” Pamela Bartz Halaschak said via video.

A flood of lawsuits filed by government entities against Purdue and other drug manufacturers, drug wholesalers and pharmacy chains began about a decade ago.

Most major countries have already settled a total of around $50 billion, with most of it earmarked to combat the opioid crisis.

The Purdue deal would be among the largest of them. Members of the Sackler family would have to pay up to $7 billion and give up ownership of the company. None have served on its board or received payment since 2018. Unlike a similar hearing four years ago, none were called to testify at this week’s hearing.

The company would benefit from a name change and new supervisors who would dedicate their future profits to fighting the opioid crisis.

There are also non-financial provisions. Some members of the Sackler family are expected to renounce any involvement in companies selling opioids in other countries.

Family members would also be prohibited from having their names added to institutions in exchange for charitable contributions. The name has already been removed from museums and universities.

And company documents, many of which would normally be subject to professional secrecy, must be made public.

Unlike other major opioid settlements, people harmed by Purdue products could receive money as part of the settlement. About $850 million would be set aside for them, with more than $100 million earmarked to help children born struggling with opioid withdrawal.

Around 139,000 people are actively demanding this money. However, many of them have not proven they were prescribed opioids from Purdue and will receive nothing. Lawyers expect that those who had prescriptions for at least six months would receive about $16,000 each and those who had them more briefly would receive about $8,000. Legal fees would reduce what people actually receive.

A woman whose family member suffered from opioid addiction told the court via video Thursday that the settlement doesn’t help people with substance use disorders.

“Tell me how you can sleep at night knowing that people are going to make so little money that they can’t do anything with it,” asked Laureen Ferrante of Staten Island, New York.

Most of the money will go to state and local governments to use in their efforts to mitigate the harm caused by the opioid epidemic. The number of overdose deaths has declined in recent years, a decline that experts say is partly due to the impact of regulations.