Attorney General James helps shut down Purdue Pharma, secures $ 4.5 billion from Sackler family for role in opioid crisis
Resolution closes Purdue, ends Sacklers’ ability to sell opioids
Ever Again, and guarantees unprecedented public disclosure
New York – New York Attorney General Letitia James today announced a resolution of its lawsuit against the Sackler family and their company, Purdue Pharma, for their role in the opioid crisis. The deal will, above all, shut down Purdue Pharma and end the Sackler family’s ability to re-manufacture opioids. The deal will also provide one of the largest payments individuals and entities they control have paid to resolve law enforcement action in U.S. history – over $ 4. $ 5 billion will be donated to fund prevention, treatment and recovery programs in communities across the country. Additionally, the deal will release tens of millions of documents related to the business and the roles of family in triggering the opioid crisis – requiring unprecedented disclosure of the role Purdue and the Sacklers played in it. Americans’ hooks on opioids.
“For nearly two years since Purdue Pharma declared bankruptcy, the company and the Sackler family have used every possible delaying tactic and abused the courts, all in an effort to protect their misconduct,” said Attorney General James . “While this deal is not perfect, we are delivering $ 4.5 billion to opioid-ravaged communities on an accelerated schedule and it is once and for all removing one of the country’s most dangerous drug traffickers from the drug trade. opioids. We will be able to invest these funds more quickly in prevention, education and treatment programs, and put an end to the delays and legal maneuvers that could potentially continue for years and on several continents. While no amount of money will ever make up for the thousands of people who have lost their lives or become addicted to opioids across our state or bring comfort to the countless families torn apart by this crisis, these funds will be used to prevent any future devastation. “
The lawsuit resolution – which was filed in bankruptcy court late last night and is pending approval – requires the Sacklers to pay $ 4.325 billion over the next nine years, with New York State set to receive at least 200 millions of dollars, and possibly more, to fight the opioid epidemic. Thousands of individual victims of Purdue’s misconduct will also receive compensation as part of the bankruptcy process. In addition, the resolution demands that the Sacklers cede control of the family foundations – which will hold no less than $ 175 million in assets – to the trustees of a National Opioid Abatement Trust project dedicated to tackling the opioid crisis, thus increasing the total delivered to the communities. nationally to more than $ 4.5 billion. In addition, the Sackler family will be prohibited from seeking or authorizing new naming rights in connection with donations or charities or the like for the next nine years.
Additionally, the resolution shines a light on the activities of Purdue and the Sacklers by releasing more than 30 million documents, including privileged communications on the original Food and Drug Administration (FDA) approval of OxyContin, as well as all records relating to the manufacture, sale or marketing of opioids in the United States. Purdue will also waive his attorney-client privilege to reveal confidential communications with his attorneys about tactics used to push opioids, doctors and drugstores ‘pills’ diverting drugs, and the billions of dollars Purdue has paid the Sacklers. . Specifically, Purdue will release for public disclosure evidence from Purdue’s prosecutions and investigations over the past 20 years, including transcripts of depositions, videos of depositions and 13 million documents. Purdue will also have to deliver more than 20 million additional documents, including every non-privileged email to Purdue that was sent or received by every member of the Sackler family who served on the board of directors or worked at the company.
In March 2019, Attorney General James filed the country’s largest lawsuit to hold various manufacturers and distributors responsible for opioid crisis. The manufacturers named in the complaint included Purdue Pharma and its affiliates; members of the Sackler family and the trusts they control; Janssen Pharmaceuticals and its subsidiaries (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; Teva Pharmaceuticals USA, Inc. and its subsidiaries; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint are McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation and Rochester Drug Cooperative Inc.
The cases against Mallinckrodt and Rochester Drug Cooperative are now in US bankruptcy court. A settlement that ended the sale of opioids by Johnson & Johnson nationwide and delivered $ 230 million to New York City alone was announced less than two weeks ago. The trial against all other defendants is currently underway.
Moreover, earlier this year, in February, Attorney General James co-led a coalition of nearly every Attorney General in the country in issuing more than $ 573 million – of which more than $ 32 million was earmarked for New York State – for treatment and reduction opioids as part of an agreement and consent judgment with McKinsey & Company.
At the New York Attorney General’s Office, this case was led by Senior Deputy Attorney General Jennifer Levy, Former Opioid and Impact Litigation Legal Advisor David Nachman, Senior Advisor and Special Advisor Mr. Umair Khan , Deputy Attorney General Louis Testa of the Bankruptcy Litigation Unit, Section Chief Kathryn Blake of the Civil Collections Unit and Deputy Attorney General Jennifer Simcovitch of the Office of Health Care, and was brought on by the work of senior enforcement counsel John Oleske; the head of the Investor Protection Bureau, Peter Pope; Assistant Attorneys General Connor Duffy, Monica Hanna, Carol Hunt, Diane Johnston, Leo O’Toole, Jeremy Pfetsch, Noah Popp; Michael Reisman and Lois Saldana; project lawyers Wil Handley, Stephanie Torre and Eve Woodin; Paralegal Ketty Dautruche; Legal Assistant David Payne; director of research and analysis Jonathan Werberg; Data Scientist Gautam Sisodia; Data Analyst Anushua Choudhury; IT specialists Hewson Chen and Paige Podolny; and Kristin Petrella, Electronic Discovery Document Review Specialist.