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Purdue Pharma creditors overwhelmingly support bankruptcy plans

The majority of Purdue Pharma’s more than 120,000 creditors voted in favor of approving the company’s bankruptcy plan. This is an important step towards a final release of over $ 4.5 billion that will help settle opioid epidemics and thousands of proceedings. For the company and its owners, members of the millionaire Sackler family.

Preliminary table of votes cast by cities, states, tribes, insurance companies, families, and caregivers of newborn babies Withdrawal symptoms Exposure to opioids in utero indicates that 95 percent are in favor of the plan, the company said.

Under the plan, Suckler will relinquish control of Purdue. The reorganized company will reappear under a new name and will be run by an independently appointed board of directors.Profit Its signature prescription analgesics, oxycontin, and addiction reversal drug sales will flow into creditor trusts that fund addiction prevention and treatment programs.

Sackler who has not filed for personal bankruptcy will pay at least $ 4.5 billion in personal funds over nine years (in addition to $ 225 million from another company). Civil settlement With Justice DepartmentNS).

Neither the company nor Suckler admit any misconduct related to these proceedings.

In the last 20 years 500,000 people In the United States Died From prescription and illegal opioid overdose Record number of years in 2020..Padew has been widely believed to have helped ignite the problem by downplaying the potential addiction of oxycontin and aggressively selling the drug in misleading campaigns, and complained. Guilty In two Divide Investigation by the Ministry of Justice.

To implement a complex plan, it must be approved by Judge Robert Drain of the US Bankruptcy Court in Southern New York. This was a long-anticipated move, and the overall outcome of the creditor vote made it even more likely. Purdue said it would announce final polls on August 2, a week before the final challenged court hearing, but the company does not expect these results to change significantly. The judge is expected to make a decision shortly thereafter.

A few states have challenged the plan, Ministry of Justice, It seems unlikely that these efforts will upset the procedure. Earlier this month 15 State Lawyers President One of the loudest opponents, including Massachusetts and New York, they said they made the plan more talkative and now negotiated new terms to support it.

Among the new elements reached by the state and Purdue during mediation was the company’s agreement to release over 30 million documents to public repositories, including private communication with lawyers. These documents are expected to reveal the full picture of the company’s and Suckler’s involvement in the sale of Oxycontin.

Long known for its philanthropic work in the arts, Suckler waives the future naming rights of the donating institution until the opioid’s contribution to the settlement is fully paid.

For almost two years, the dissenting state argued that it should be able to reach directly into individual sackler pockets because it did not file for bankruptcy protection. However, under the terms of the Purdue program, Suckler and his company were freed from all civil liability.

Some members of Congress have introduced legislation to close loopholes in bankruptcy law. It will allow states and perhaps individuals to sue third-party owners of bankrupt companies, such as Suckler, who have not filed for bankruptcy themselves. However, if the bill is passed, Purdue University’s plans and Suckler’s status will almost certainly be resolved for many years.

Purdue Pharma creditors overwhelmingly support bankruptcy plans

Source link Purdue Pharma creditors overwhelmingly support bankruptcy plans

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