Purdue Pharma, which made $ 3 billion in sales of drugs like the opioid Oxycontin in 2017 alone, will file for bankruptcy under a potential settlement that covers hundreds of lawsuits against the company. The announcement is also alleged that the Sackler family – owned by Purdue – used Swiss bank accounts to transfer $ 1 billion from the company to private accounts to avoid a seizure in court.
What does the comparison and filing for bankruptcy mean for people who have sued for opioid addiction or death?
Coping with the crisis
"This unique framework for a comprehensive solution will deliver all of Purdue's assets and resources to the benefit of the American public," said Steve Miller, Purdue's Board of Directors. "This comparative framework avoids wasting hundreds of millions of dollars and years on protracted litigation. Instead, communities across the country trying to deal with the opioid crisis are being provided with billions of dollars and critical resources. We will continue to work with attorneys general and Prosecutors work together. " other plaintiff representatives to conclude and implement this agreement as soon as possible. "
If it just could be that easy. While Purdue has agreed to spend more than $ 10 billion to cope with the opioid crisis and settle claims by 24 attorneys general, five U.S. territories, and certain plaintiffs from hundreds of other lawsuits, several states have refused to sign the agreement and a plan to do so To challenge the court. It is estimated that Purdue faces a total of 2,600 lawsuits.
Follow the money
How can plaintiffs get money from a bankrupt company? Purdue is filed in accordance with Chapter 11, which avoids the liquidation of assets and allows a company to continue operating and repay its debts over time. (Liquidation is possible in accordance with Chapter 11, but not as guaranteed in Chapter 7 bankruptcy proceedings.) Purdue will therefore not discontinue its opioid surgery or other drug sales in the near future.
However, his bankruptcy plan could face similar obstacles to his statutory settlement agreement. Any reorganization plan according to Chapter 11 requires approval: creditors who hold at least two thirds of the total debt and more than half of the total number of claims must agree to the plan. So there is no guarantee that most Purdue creditors will unsubscribe, and some of these creditors may be in favor of liquidation if they believe it means they are more likely to be repaid.
And the money trail can complicate things too. According to court records, members of the Sackler family received more than $ 4 billion from Purdue from 2007 to 2018, the AP said, and much of the property is believed to be held outside the United States.
If you are considering or considering an opioid-related legal claim, contact an experienced personal injury attorney to find out how the settlement and bankruptcy can affect your case.