Judge approves opioid settlement

A US bankruptcy judge on Wednesday gave conditional approval to the bankruptcy reorganization plan of Purdue Pharma, the maker of the opioid OxyContin, resolving thousands of lawsuits over its role in the two-decade opioid crisis that killed a half-million Americans.

The order approving the Chapter 11 plan by Judge Robert Drain of the US Bankruptcy Court in White Plains, New York, is contingent on Purdue lawyers making relatively minor changes to the plan described by Drain during a hearing.

He said that he wanted small changes to the plan, adding that he wished it provided for more, but the costs of further delay, he said, and the benefits of an agreement he described as "remarkable" in its consensus and focus on abating the epidemic, tilted toward approval.

Speaking from the bench in a marathon session that ran to six hours, Drain said that the case was the most complex one he had ever faced.

"This is a bitter result," he said. "B-I-T-T-E-R," he spelled out, explaining that he was incredibly frustrated that so much of the Sackler money was parked in offshore accounts. He said he had expected a higher settlement.

Drain acknowledged that Purdue Pharma's opioid products undoubtedly played a role in the country's "massive public health crisis", and said he believes the settlement money will help struggling communities fund drug treatment programs.

The settlement reached with creditors, including thousands of state and local governments, tribes, hospitals and individuals, will reorganize Purdue into a public benefit company with a board appointed by public officials and will put profits into government-led efforts to prevent and treat opioid addiction.

The Sackler family will give up ownership of the company and pay a $4.3 billion settlement. Members of the family have been granted immunity from future opioid lawsuits.

Throughout the legal process, the Sacklers, who are one of the wealthiest families in the world, didn't admit to any wrongdoing nor have they ever been charged with any.

The family has admitted to making more than $10 billion from opioid sales.

The ruling can be appealed by the handful of federal and state authorities that opposed Purdue's bankruptcy-exit plan and argued at trial that the settlement structure is unconstitutional and the Sacklers aren't contributing enough of their wealth.

The settlement also sets up a compensation fund that will pay some victims of drug addiction an expected $3,500 to $48,000 each.

The painstakingly negotiated plan will end thousands of lawsuits brought by state and local governments, tribes, hospitals and individuals to address a public health crisis that led to the deaths of more than 500,000 people nationwide.