Purdue Pharma, the company at the center of the opioid crisis, is dissolving through bankruptcy proceedings, a move that will see the creation of a nonprofit successor organization. This nonprofit is intended to focus on addressing the opioid addiction epidemic, a stark contrast to the devastation the company’s products have wrought. The Sackler family, who profited immensely from Purdue Pharma, will not face personal financial ruin, though the details of their continued wealth and its use are a significant point of contention and public outcry.
The bankruptcy plan aims to shift Purdue Pharma’s assets towards a new entity, a move that many view as a cynical attempt to distance the family from the consequences of their actions.… Continue reading
Purdue Pharma, the maker of OxyContin, is set to dissolve and be replaced by a new company focused on public good as a vast legal settlement resolves thousands of lawsuits. A federal judge delivered a criminal sentence to the company, admitting to a sophisticated crime scheme that fueled the opioid epidemic. Despite acknowledging the profound suffering caused, the judge expressed sympathy for victims while noting that no individuals will face punishment. The settlement includes billions in payments from the Sackler family and Purdue, with much of the funds earmarked for combating the opioid crisis and providing some compensation to individual victims.
Read More
A judge delayed Purdue Pharma’s criminal sentencing to allow victims of the opioid crisis to attend in person, moved by protests outside the courthouse. The sentencing is expected to finalize a $225 million forfeiture by the OxyContin maker, clearing the path for a broader settlement of thousands of lawsuits. This comprehensive agreement includes up to $7 billion from the Sackler family and resolves federal investigations, although some victims continue to advocate for further prosecution.
Read More
Purdue Pharma and the Sackler family have agreed to a $7.4 billion settlement to resolve lawsuits stemming from the opioid crisis caused by OxyContin. The Sacklers will pay up to $6.5 billion and relinquish company ownership, while Purdue will contribute nearly $900 million. This revised settlement, exceeding the previous offer by $500 million, requires court approval but avoids anticipated federal opposition. The funds will compensate victims, address the opioid crisis, and provide treatment resources.
Read More
McKinsey & Company will pay $650 million to settle a federal investigation into its role in boosting OxyContin sales for Purdue Pharma. This settlement avoids criminal charges but requires McKinsey to cease work related to controlled substances for five years. Former McKinsey senior partner Martin Elling pleaded guilty to obstruction of justice for destroying relevant documents. The Justice Department alleges McKinsey knowingly aided Purdue Pharma in unsafe and unethical sales practices, contributing to the opioid crisis.
Read More
The situation with the Supreme Court rejecting the nationwide opioid settlement with Purdue Pharma is a complex and controversial one. On one hand, the Court made a technically correct ruling based on the interpretation of the Bankruptcy Code. However, the implications of this decision are far-reaching and deeply impactful, especially for the victims of the opioid crisis.
The crux of the matter lies in the fact that the settlement would have shielded the Sackler family from civil lawsuits while providing billions of dollars to combat the opioid epidemic. Sure, the Sacklers agreed to contribute up to $6 billion and give up ownership of the company, but they would have retained billions more.… Continue reading
Matt Underwood 
John Q. Hosedrinker