Madison Township Trustees Approve Purdue Pharma’s Bankruptcy Plan to Receive Potential Opioid Settlement Funds | New
MADISON TOWNSHIP A plan to reorganize Purdue Pharma was approved by Madison Township Trustees Monday afternoon, paving the way for the Township to receive future opioid settlement funds.
According to an FAQ regarding Purdue’s reorganization plan, before filing for Chapter 11 bankruptcy in 2019, the company faced more than 2,900 lawsuits in the United States for the development and commercialization of OxyContin.
The drug is said to have exacerbated the opioid crisis.
In March, Purdue filed a plan worth more than $ 10 billion in a U.S. bankruptcy court in New York, according to several national media outlets. A federal bankruptcy judge has authorized the maker of OxyContin to obtain the votes required for the reorganization plan from 600,000 creditors.
According to the Purdue FAQ, Madison Township and 6,000 other local governments filed claims against Purdue last July and are eligible to vote on the proposed bankruptcy plan.
Madison Township finance manager Leanna Rhodes said the Richland County District Attorney’s Office recommended the township take action on Monday.
After Monday’s vote, Administrator Catherine Swank said the amount of money the township would receive was unknown at this time.
The township had no plans to file a lawsuit against Purdue last year after Fire Chief Ron Luttrell said the department had no major problems obtaining Narcan, the drug used to treat overdoses, according to Rhodes.
However, the township changed its mind after the county attorney’s office provided an estimated request from economists. According to economists’ opinion, the estimated cost of damage and reduction in Madison Township from 2003 to 2040 resulting from the opioid crisis will be over $ 540,000.
The estimates were based on various categories such as drug treatment program spending and lost tax revenue, according to the estimate.
Andrew Keller, Richland County Deputy Chief Civil Prosecutor, said in an email Tuesday that Madison Township was eligible to file proof of claim in the Purdue bankruptcy because the trustees are members of the national class action lawsuit against opioids versus several opioid drug manufacturers.
Keller said the township did not make a specific monetary claim during its participation as a member of the group.
Richland County commissioners also recently voted in favor of Purdue’s reorganization plan, according to Keller.
Purdue has divided the claims against the company into 18 classes, according to the FAQ. Two-thirds of the members of each class must vote for the plan for it to be approved. The bankruptcy court has scheduled a confirmation hearing on August 9, of which Purdue will officially announce the results of the vote.
While it is unclear how much money local governments will receive at this time, Purdue estimated that Ohio would get more than 4.3% of the settlement funds, ranking sixth in the country. California will likely get the most funds at almost 10 percent. Florida is expected to receive 7 percent of the money.
According to Purdue’s FAQ, the money will go through the National Opioid Abatement Trust, which was established to allocate the funds and support approved abatement uses.