NEW YORK (MetaWorld Media) — Legal representatives from Purdue Pharma, the Sackler family, and various affected groups across the U.S. are expected to deliver a powerful consensus in a bankruptcy court hearing on Friday: Approve the proposed settlement plan to address thousands of lawsuits stemming from the opioid crisis.
If U.S. Bankruptcy Judge Sean Lane agrees, it could wrap up a complex legal saga linked to an epidemic that has contributed to nearly 900,000 deaths in the U.S. since 1999.
Closing arguments were anticipated on the third day of hearings regarding Purdue Pharma’s bankruptcy plan, which it first filed six years ago amid lawsuits that totaled claims in the trillions.
A Quiet Opposition
This time around, the opposition to the settlement appears muted. The debate surrounding justice for victims versus the practicalities of bankruptcy proceedings is ongoing. The U.S. Supreme Court had previously rejected an earlier agreement due to concerns over the Sackler family's immunity from lawsuits. However, the current plan allows for legal actions against family members who opt out of the settlement.
During the proceedings, several individuals voiced their concerns, arguing that only the victims should receive compensation, and there were demands for criminal accountability for the Sackler family. Notably, some personal injury victims chose not to participate in the vote, with only 218 opposing the plan out of more than 54,000 surveyed.
A Historic Settlement Opportunity
The proposed settlement is poised to be among the largest related to the opioid crisis, with members of the Sackler family contributing up to $7 billion and relinquishing control of Purdue Pharma. The new structure would redirect future profits to initiatives aimed at battling the opioid crisis.
The plan has set aside $850 million for individuals harmed by the opioids, with specific provisions to support children affected by opioid withdrawal. Many have criticized the allocation as insufficient, as the amounts awarded to victims will likely be reduced by legal fees.
Despite previous resistance, the consensus among government and community groups indicates a significant shift in moving forward to address the ongoing opioid epidemic through the proposed settlement.
