A proposed deal for Purdue Pharma LP to resolve more than 2,000 lawsuits over its role in the opioid crisis is facing pushback from a vocal group of state attorneys general who say it doesn’t bring in enough cash to satisfy their demands, the Wall Street Journal reported. Virtually every state, in addition to thousands of cities and counties across the U.S., sued Purdue, claiming the company’s aggressive promotion of its painkiller OxyContin helped trigger an addiction epidemic. Some states, including New York, Connecticut and Massachusetts, have in recent days criticized a proposed settlement with Purdue valued at as much as $12 billion. Among the states’ concerns is the deal’s reliance on future drug sales, how much money will be guaranteed and the Purdue-owning Sackler family’s contribution. Under the current proposal, Purdue would file for bankruptcy and emerge as a public-benefit corporation run by trustees. That proposal, which is still in flux, would include $3 billion in cash from the Sackler family. Much of the rest of the value, however, is tied to future sales of OxyContin, other drugs in development and the possible sale of another Sackler-owned company. The Sacklers would cede ownership of Purdue through the bankruptcy and sell a separate company, Mundipharma, which sells drugs outside the U.S., effectively severing any connection the family has to opioid sales. Under the proposal, the Mundipharma sale could bring in another $1.5 billion to benefit the local and state governments suing Purdue, contingent on the sale price.
