A number of prescription opioid manufacturers, including OxyContin developer Purdue Pharma and generics maker Mallinckrodt, have agreed to pay billions to settle lawsuits accusing the companies of fueling a drug abuse crisis in the U.S. The money they agreed to pay was meant to help communities fight opioid addiction and cover rehabilitation costs for individuals, WSJ Pro Bankruptcy reported. Three of those settlements are at risk of falling apart or being substantially reworked, putting more than $8 billion of settlement money intended for addiction victims and governments in jeopardy. The drug manufacturers in particular faced charges of deceptive marketing practices, as companies like Purdue told the public that less than 1% of patients became addicted to their opioid pills, although internal company correspondence revealed that they knew that the risk of addiction was in fact much higher. Purdue Pharma’s settlement is also at risk. The drugmaker and tens of thousands of addiction victims, state governments and municipalities last year reached a global settlement that includes a $6 billion contribution that Purdue’s owners, the Sackler family, agreed to pay. In July, however, the federal government filed an appeal to the Supreme Court to review the settlement, suggesting that the inclusion of legal waivers for the family members may not conform with U.S. law. If the justices agree to hear the case, it could take until the end of next year for a decision to be made on whether the releases are legally permissible, and even longer for funds to be distributed. If the Supreme Court decides that the Sacklers can’t get releases under their plan, it is possible the whole settlement will have to be reworked and renegotiated.
