Post by : Badri Ariffin

In a landmark decision, a federal bankruptcy judge signaled approval for Purdue Pharma’s $7 billion deal to resolve thousands of lawsuits tied to the opioid crisis. The agreement, spanning 15 years, requires the Sackler family to contribute billions, with funds earmarked for both state-led programs and victims directly affected by opioid addiction.

The settlement replaces a previous Supreme Court-rejected plan that had controversially shielded Sackler family members from future lawsuits. Under the new arrangement, those who opt out of the settlement retain the right to pursue legal action against the family.

Ending a Six-Year Bankruptcy Journey

Purdue Pharma, the maker of OxyContin, filed for bankruptcy six years ago amid lawsuits totaling trillions of dollars. The company, now to be renamed Knoa Pharma, will redirect future profits to initiatives aimed at combating the opioid epidemic. Family members will formally give up ownership and are barred from involvement in opioid-related businesses globally.

Lawyers described the bankruptcy as one of the most complex in U.S. history, involving coordination among cities, states, Native American tribes, and victims. Over 54,000 individual claimants were asked to vote on the plan, with an overwhelming majority in favor.

Victim Compensation and Community Impact

Around $850 million of the settlement will directly support individual victims, including over $100 million for children born with opioid withdrawal. Preliminary estimates suggest qualified individuals could receive between $8,000 and $16,000 each, before legal fees.

Most of the remaining funds are set aside for state and local governments to mitigate the lasting effects of the opioid epidemic. Experts say these programs may have contributed to a recent decline in overdose deaths, though tracking effectiveness remains a challenge.

Public Sentiment and Controversy

While opposition was quieter than in past hearings, some victims and advocates voiced concerns that the funds fall short of addressing ongoing substance use challenges. Others criticized the lack of criminal accountability for the Sacklers, though prosecutors retain the right to pursue charges outside bankruptcy proceedings.

The settlement also mandates transparency measures, with company records—including previously private documents—made public, and prohibits charitable naming rights in exchange for family donations.

With this deal, years of litigation and uncertainty may finally come to a close, marking a pivotal moment in America’s ongoing effort to address the opioid crisis.

#Business News #Economic