Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Purdue's Sackler owners propose up to $6 billion opioid settlement

Stock Markets Feb 18, 2022 05:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A pharmacist holds prescription painkiller OxyContin, 40mg pills, made by Purdue Pharma L.D. at a local pharmacy, in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey

By Dietrich Knauth and Tom Hals

(Reuters) -The Sackler family owners of Purdue Pharma LP have proposed a new and larger settlement worth up to $6 billion to resolve allegations that the OxyContin maker and its owners contributed to the deadly U.S. opioid epidemic, a mediator's report showed on Friday.

The mediator, U.S. Bankruptcy Judge Shelley Chapman, has been overseeing talks between Sackler family members and eight states and the District of Columbia. U.S. District Judge Colleen McMahon in December blocked an earlier $4.33 billion proposed settlement that would have legally shielded the family members, a decision that threatened to upend Purdue's bankruptcy reorganization.

The Sackler family members are trying to win support for a new settlement that could allow Stamford, Connecticut-based Purdue to emerge from bankruptcy.

The proposed framework would add at least $1.175 billion in cash, plus up to $500 million in proceeds from the sale of other companies owned by the family members, according to the mediator. While the agreement is not final, the mediator revealed the framework under discussion for the first time on Friday.

All of the funds would be directed toward abatement of the opioid crisis, including support and services for survivors, victims and their families, according to Chapman.

"We remain focused on achieving our goal of providing urgently needed funds to the American people for opioid crisis abatement," Purdue said a statement. "We believe a global settlement is the swiftest and most cost-effective exit path from Chapter 11 and we will continue working to build consensus."

Not all of the states have agreed to the deal, and Chapman asked for permission from U.S. Bankruptcy Judge Robert Drain, who is overseeing the Purdue case, to continue negotiations until Feb 28. That date would fall close to the March 3 expiration of legal protections that prevent the Sacklers from being sued while Purdue remains in bankruptcy.

Purdue, maker of the highly addictive OxyContin opioid pain drug, filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing it and Sackler family members of fueling the opioid epidemic through deceptive marketing.

The company pleaded guilty to misbranding and fraud charges related to its marketing of OxyContin in 2007 and 2020. Sackler family members have denied wrongdoing.

McMahon ruled in December that the bankruptcy court lacked the authority to approve sweeping legal protections to shield the Sacklers from the opioid lawsuits.

Purdue and Sackler family members have appealed McMahon's decision to the New York-based 2nd U.S. Circuit Court of Appeals, seeking to reinstate legal protections for the family members. Oral arguments in that appeal are scheduled for April 25.

The size of the Sackler contribution was a source of controversy throughout Purdue's bankruptcy case. Sackler family members took out more than $10 billion from the company in the decade before it filed for bankruptcy, and they had a net worth of $14 billion in 2015, according to McMahon's decision.

The bankruptcy court also evaluated the Sacklers' withdrawals from the company, but it concluded that there were legal and practical hurdles that made it difficult to recoup anything close to the $10 billion withdrawn.

Purdue's Sackler owners propose up to $6 billion opioid settlement

Related Articles

Dow Futures Ease After Positive Week
Dow Futures Ease After Positive Week By - Aug 14, 2022 4

By Oliver Gray - U.S. stock futures were trading slightly lower during Sunday’s evening deals, after major benchmark averages rallied for the 4th consecutive...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email