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

Adam J. Levitin, a law professor specializing in insolvency at the Georgetown University Law Center, said “it’s not unprecedented, but it’s 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 no money can go to claimants until the bankruptcy case is over.

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 overdoses, 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 costly. 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. “The biggest question from my point of view is how much money will be spent in the administration of all those trusts.

Scott Bickford, an attorney representing individuals, families, and children who showed withdrawal symptoms from drugs in utero, noted that the current proposal provided $60 million for programs to help these children and to compensate them. Dedicated a fund to, an improvement from older versions.

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