West Virginia AG Rejects Purdue Bankruptcy Plan | VM News
CHARLESTON, Va. (WV News) – The West Virginia attorney general has said he plans to vote against Purdue Pharma’s bankruptcy plan.
“I remain vigorously opposed to a proposed allocation formula that would distribute settlement funds largely based on the population of a state or local government – not the intensity of the problem,” said the Attorney General Patrick Morrisey. “Such an award formula does not recognize the disproportionate damage caused by opioids in our state. I look forward to taking our case to court in August.
The proposed settlement fund allocation plan, which is largely population-based, does not address the disproportionate damage caused by opioids in the state, Morrisey said.
In April, Morrisey filed his opposition with the U.S. Southern District of New York bankruptcy court, arguing that Purdue’s failure to disclose how his multibillion-dollar proposal would be split among states undermined his desire to avoid legal challenges to an inherently unfair arrangement.
Purdue Pharma responded by publicly disclosing the once-closed Denver plan, which the attorney general opposes because it would distribute settlement funds largely based on the population – not the intensity of the problem.
Morrisey sued Purdue Pharma and former CEO Richard Sackler in May 2019. The lawsuit alleges that Purdue Pharma created a false narrative to convince prescribers that opioids are not addictive and that its opioid products were more sure they really were.
The lawsuit argues that Purdue Pharma has proliferated a deceptive marketing strategy in reckless disregard of compliance enforcement. It also alleges that the company’s sales representatives have consistently claimed that OxyContin does not have a dose cap, despite claims by federal regulators that the OxyContin dose cap was evident from side effects.
The lawsuit marked West Virginia’s second against Purdue Pharma. The first, filed in 2001, resulted in a settlement of $ 10 million in 2004. However, this case involved an earlier version of the opioid than the reformulated, so-called tamper-evident OxyContin, which debuted in 2010.