Judge approves Purdue Pharma’s restructuring plan to be voted on by thousands of claimants


Adam J. Levitin, a law professor specializing in bankruptcy at Georgetown University Law Center, said “this is not unprecedented, but it is highly controversial” that the owners of a bankrupt company are to be exempt from future lawsuits. “It is also unclear whether the bankruptcy court has jurisdiction to do so,” because Sackler himself is not a party to bankruptcy.

Judge Drain has long urged negotiators to act quickly, as claimants have no money to go until the bankruptcy case ends.

According to the plan, the reorganized, as-yet unnamed company will fund about half a dozen trusts, including separate trusts for tribes, adults and children. Sales of overdose-reversing drugs from nonprofits, as well as income from moderate amounts of Oxycopt, will continue to be pumped into these trusts.

But more than 100, 000 individual claimants, including relatives of those who died from prescription overdose, would receive relatively modest compensation, ranging from about $ 3,000 to $ 48,000 – before cutting attorneys’ fees and costs. Go

In fact, more than half a billion dollars in total will go towards fees and costs earned by plaintiff’s public and private lawyers.

Monitoring of new trusts will also be expensive. Trust distribution is incredibly complex, said Lindsey Simon, an assistant professor at the University of Georgia School of Law, who has followed the case closely. He said, ‘The biggest question from my point of view is how much money will be spent in the administration of all those trusts.

Scott Bickford, a lawyer who represents individuals, families and children who showed withdrawal symptoms from drugs exposed in utero, noted that the current proposal raised $ for programs to help these children. Has dedicated 60 million.

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