Purdue Pharma's bankruptcy plan was approved by a federal judge Sept. 1, meaning the company that made and marketed the opioid Oxycontin will be dissolved, The New York Times reported.
Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., provisionally approved the plan, though he said he wants modest adjustments, according to the Times. The approval of the bankruptcy plan ends thousands of lawsuits against Purdue Pharma brought by state and local governments, Native American tribes, hospitals and individuals.
But, the plan has faced criticism as it largely absolves members of the Sackler family, the owners of Purdue Pharma, from future opioid-related liability. The family members are receiving protections that are typically given to companies emerging from bankruptcy, but not to the owners, like the Sackers, who don't file for bankruptcy, the Times reported.
Several states were preparing to file an appeal as soon as the plan was approved, according to the Times.
Under the agreement, the Sackler family will pay $4.5 billion over nine years in installments. The money is to go primarily to addiction treatment and prevention programs across the U.S. and will come from the family's investments and the sale of their international pharmaceutical companies.
Purdue Pharma is ordered to pay roughly $500 million, the Times reported.
States will get money from a national opioid abatement trust, which they will distribute to their local governments, and Native American tribes will have their own fund. A separate fund will be set up for the 130,485 individuals and families included in the agreement who suffered from addiction or died from an overdose. They will receive between $3,500 and $48,000, according to the Times.
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