Purdue Pharma LP has proposed a settlement in bankruptcy court that could provide as much as $10 billion to help U.S. communities cope with the opioid epidemic. But for some states, the moral cost of accepting the deal is too high because it relies on even more sales of OxyContin, the highly addictive painkiller that helped create the public-health crisis, Bloomberg News reported. The settlement offer calls for Purdue’s owners, the Sackler family, to pay at least $3 billion over seven years, with another $1 billion from current Purdue assets. The family, which amassed a $13 billion fortune, also would give up ownership of the company to a trust controlled by the states, counties and cities that sued Purdue, generating billions of dollars in additional income to be spent on treatment programs and law enforcement. About half the states have agreed to the deal, saying the payout would help ease the burden on taxpayers. The other half said they’ll fight it in bankruptcy court. A judge must decide if the proposal is sufficient to absolve Purdue and its owners of liability from more than 2,000 lawsuits. Massachusetts Attorney General Maura Healey, who sued Purdue last year and wants the company liquidated, said she’s concerned the settlement would be funded “by future sales of dangerous and addictive opioids.” Many opponents of the settlement also say it falls short of the costs borne by U.S. communities and that the payout may be less than promised. They claim the Sacklers are getting off too cheaply and should pay a bigger financial penalty for their role in fostering an addiction epidemic that’s killed more than 400,000 Americans. But a distaste for the opioid business has emerged as potent stumbling block.
