Purdue Going Bankrupt Because Of OxyContin Lawsuits, Wants To Create New Company, Continue Selling OxyContin
The victims and their families deserve better.
Back in 2018, Massachusetts Attorney General Maura Healey announced a lawsuit against Purdue Pharma, the maker and marketer of OxyContin. OxyContin is a brand of the semi-synthetic opioid Oxycodone that is used to treat chronic pain. It's an incredibly addictive drug that has claimed the lives of hundreds of thousands.
This isn't the first time Purdue has been in trouble for "misbranding" OxyContin.
It's pretty disgusting what the leadership at Purdue did and you can learn more about it here.
The lawsuit has been crippling to Purdue, and just before midnight yesterday, the company filed its bankruptcy plan in federal court.
Here are the key takeaways:
Purdue Pharma will be dissolved; a new company will be created
The new company will sell OxyContin
The new company will sell low-cost drugs used to treat addiction
Revenue will be directed towards helping those affected by the opioid pandemic
Sackler family will pay ~$500M upfront
$4.275B to be paid in installments over next 9 years
Sackler family will not be involved in the new company
I thought this was a joke when I first read it. It's insulting.
Many others feel the same way: 24 states have already rejected the plan.
The bold points are the ones I take serious issue with.
The president of Purdue, Steve Miller, says that the new company can sell Oxycontin "ethically and safely."
To me, it would be unconscionable to allow a company (new or not, I don't care) that has clearly demonstrated it cannot or will not do business ethically to continue doing the very thing they cannot do! I feel like I'm taking crazy pills.
On to the next point - the Sackler family will only have to pay ~$500M upfront. This is the same family that made $10B from the company from 2008-2017.
So the billionaires get to keep their billions, presumably using them to generate more revenues to pay down their indiscretions.
The Sacklers became billionaires by causing a national tragedy, they shouldn’t be allowed to get away with it by paying a fraction of their investment returns over the next nine years and walking away richer than they are today.
Maura Healey, Massachusetts Attorney General
And then finally there's the payment installment plan that is structured conveniently so that the new company can manage payments while continue to operate and generate profits.
Oh, and the cherry on top: the Sacklers have never apologized or admitted wrongdoing.
The victims and/or their families deserve better.