Bankruptcy Purdue Pharma

Purdue Pharma’s proposed bankruptcy plan for restructuring is now up for a vote among claims and creditors.

Following the voting period, the Bankruptcy Court will hold a Confirmation Hearing to decide whether the plan should be approved. On August 9, 2021, a hearing for confirmation will be conducted.

If you filed a claim before the time set by Bankruptcy Court, you may be entitled to a vote on the plan (July 30, 2020). Your vote will influence the Bankruptcy Court’s handling of claims.

Your vote must be submitted by July 14, 2021, to be considered. Your Unique E-Ballot ID# is required to vote online. Your vote came with this identification card. If you want to oppose the proposal, you must file objections by July 19, 2021.

IF A PLAN IS APPROVED, WHAT HAPPENS?

This plan will be binding on anyone who has a claim against Purdue Pharma L.P., any of its affiliate debtors, or a claim against Sackler family members or certain other entities relating to Purdue Pharma L.P. (including Purdue prescription painkillers like OxyContin(r) and other prescription opioids manufactured by Purdue).

In exchange for the release, claimants who submitted their claims within the time restriction will be able to participate in the trust distribution procedure. Claimants may be entitled to compensation from the relevant trust created under the plan if they follow the trust distribution procedures. A personal injury (“PI”) trust recovery is available to claimants with personal injury claims (including NAS personal injury claims).

Purdue University is about to be defunct. After it emerges from Chapter 11, Purdue’s operational assets will be transferred. The new company’s goal will be to combat the opioid epidemic in a public-spirited way. 

The new firm would be held to high standards, including a prohibition on marketing opioid drugs to medical practitioners. The new business will ultimately be owned by the National Opioid Abatement Trust, which was created to benefit Americans. The state and municipal governments will have no ownership or control over the new business.

The Sackler family is presently unaffiliated with Purdue Pharma and will remain so in the new business. Members of the Sackler family will be forced to divest almost all of their stakes in overseas pharmaceutical firms. 

They will also be prohibited from participating in the manufacture or sale of opioids in the future. The Sacklers agreed to pay $4.5 billion in a nine-year settlement, plus $225 million to settle civil claims, for a total of $4.5 billion.

RELEASES OF THE SACKLER FAMILY

All claims and potential claims against Sackler family members, Purdue Pharma L.P. owners and creditors, and certain individuals and related entities relating to Purdue Pharma L.P. (including Purdue prescription opioids like OxyContin(r) or any other prescription opioids manufactured and marketed by Purdue) are released under the plan. 

Claimants from the Sackler family may also sue the trusts established under the scheme. Whether or not creditors have filed a claim or voted to accept or reject the plan, these terms will apply.