Members of the Sackler family that own Purdue Pharma struck a new settlement last week with a group of eight states and the District of Columbia to resolve widespread litigation accusing the OxyContin maker of fueling the U.S. opioid epidemic. Under the new settlement, the Sacklers will pay between $5.5 and $6 billion to a trust that will be used to pay the claims of opioid creditors, including states, victims of addiction, hospitals, and municipalities, Reuters reported. The Sacklers have denied wrongdoing, but expressed "regret" that OxyContin played a role in the opioid crisis. U.S. Bankruptcy Judge Robert Drain must approve the settlement and will consider the matter at a hearing on Wednesday. The deal replaces a previous $4.3 billion agreement, which was upended on appeal after nine attorneys general argued that the Sacklers should not receive sweeping protection from current and future opioid lawsuits as part of the deal. The Sacklers have said in court testimony and filings that a settlement is predicated on them being shielded from opioid-related lawsuits. But these sweeping legal protections must first be written into a chapter 11 plan of reorganization and approved by a bankruptcy judge. To do this, Purdue must overcome the December ruling concluding that the bankruptcy court did not have the authority to release non-bankrupt parties, like the Sacklers, from litigation. Purdue is appealing that decision to the U.S. 2nd Circuit Court of Appeals, and will make oral arguments in that court on April 25. Purdue filed its briefs on Feb. 11, and opposing papers are due on March 11.
