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These Scoops are excerpts from articles published in local newspapers and other sources. Please click on the "From" link to access the full original article. Any opinions and "insights" appended to these article summaries are solely those of John Mack and do not represent the opinions of any other person or entity.
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Next Battle in Opioid Settlement Proposed by Purdue Pharma: Coming Up with a Formula to Split the Money!

Next Battle in Opioid Settlement Proposed by Purdue Pharma: Coming Up with a Formula to Split the Money! | Newtown Area News | Scoop.it

The multibillion-dollar settlement that the maker of OxyContin is negotiating to settle a crush of lawsuits over the nation’s opioid crisis contains formulas for dividing up the money among state and local governments across the country, The Associated Press has learned.

 

The formulas would take into account the number of people in a given jurisdiction who misuse opioids, the number of overdose deaths and other factors, according to a person familiar with the talks but not authorized to discuss them publicly.

 

Spelling out the way the settlement is to be split could forestall squabbles over the money and avoid what some see as the mistakes made with the hundreds of billions of dollars received under the nationwide settlement with Big Tobacco during the 1990s.

 

Activists have complained that precious little of the money from the tobacco industry went toward anti-smoking programs and too much was diverted toward state budget holes, pensions and other things unrelated to smoking’s toll

 

[Read “Big Question in Opioid Suits: How to Divide Any Settlement”]

 

In the case of the opioid litigation, some of the plaintiffs have said they want direct control over the money to make sure it goes toward treating and preventing addiction and covering some of the taxpayer costs associated with the deadly epidemic, including mental health services, police calls and foster care for children of addicts.

 

As an example of the proposed formulas, Cabell County, West Virginia, a hard-hit part of Appalachia, and the local governments in it would get a total of $975,000 for every $1 billion in the settlement. Philadelphia would receive $6.5 million.

 

Under the plan now on the table, Purdue Pharma would file for bankruptcy and transform itself into a “public benefit trust corporation,” with all profits from drug sales and other proceeds going to the plaintiffs, news reports said.

 

[NOTE: According to the WSJ, the Slackers sold U.K.-based Mundipharma, a last-minute addition to the deal presented last week. The company was valued at $7 billion in 2017. Mundipharma is a network of international companies owned by the family. It is moving rapidly into Latin America, Asia, the Middle East, Africa and other regions, and pushing for broad use of painkillers in places ill-prepared to deal with the ravages of opioid abuse and addiction. In this global drive, Mundipharma, is using some of the same controversial marketing practices that made OxyContin a pharmaceutical blockbuster in the U.S.

 

Read “The Pain in Spain: OxyContin Sales Shrink in U.S., So Purdue #Pharma Goes Global!”; http://sco.lt/8jHyQS]

 

Related Story:

  • “OxyContin/Opioid Maker Purdue Pharma Offers a $10-$12 Billion Deal to Fend Off Law Suits, Prevent Further Damage to Its Image, and Open Up a Market for Its New Drug to Treat Overdoses!”; http://sco.lt/8jHyQS
johnmacknewtowns insight:

Purdue Pharma is privately owned and not required to issue public financial reports. But Decision Resources Group, a healthcare research and consulting firm, estimates Purdue brought in $13.6 billion from 2014 through 2018 just from sales of its OxyContin, Butrans and Hysingla opioid painkillers.

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To Avoid Bankruptcy, Purdue Pharma Said to Plead Guilty to Illegally Marketing Opioids

To Avoid Bankruptcy, Purdue Pharma Said to Plead Guilty to Illegally Marketing Opioids | Newtown Area News | Scoop.it

Purdue Pharma LP has agreed to settle the state of Oklahoma’s claims that its illegal marketing of the Oxycontin painkiller caused financial devastation to local communities, the first accord in a recent wave of lawsuits stemming from the U.S. opioid crisis, according to people familiar with the matter.

 

The settlement comes two months before the scheduled start of a trial against Purdue Pharma, Johnson & Johnson and Teva Pharmaceutical Industries Ltd. in Norman, Oklahoma. Terms of the deal, which covers only Purdue, weren’t immediately available.

 

 Oklahoma claims the three opioid makers understated the risks of prescription painkillers and overstated their benefits, fueling an epidemic that’s costing its communities tens of millions of dollars for treatment and policing. Those companies and others are also battling claims by three dozen other states and 1,600 U.S. cities and counties, but those suits are pending in another court and the first trial isn’t until the fall.

 

The settlement is the first in the most-recent group of opioid lawsuits against Purdue. More than a decade ago, West Virginia settled a case against Purdue over its marketing of Oxycontin, which came on the U.S. market in 1996.

 

Related:

  • “Newtown Township Supervisors Vote to File Civil Lawsuit Against Drug Manufacturers Over Opioid Crisis”; http://sco.lt/7Wibjd
  • “OxyContin Opioid Maker Purdue Pharma Reportedly Exploring Chapter 11 Bankruptcy”; http://sco.lt/8OuLIG
  • “Purdue #Pharma Doesn't Want Court to Unseal Oxycontin Marketing Documents. What's It Hiding?”; http://sco.lt/6wb24f 
  • “OxyContin's 12-hour Problem: Misrepresentation of Efficacy Leads to Addiction & Purdue Knew It”: http://sco.lt/8RfD5F 
  • “The History of Purdue's Marketing of Oxycontin & Its Connection to the Opiate Epidemic”: http://sco.lt/6RajLd
  • “Doctor with Ties to Purdue #Pharma Helped Develop Canadian Opioid-Prescribing Guidelines”: http://sco.lt/7f1iin 
johnmacknewtowns insight:

As published in the Washington Post (3/27/2019): “The reckoning for the worst drug epidemic in U.S. history began Tuesday, with Purdue Pharma and the state of Oklahoma agreeing to a $270 million out-of-court settlement in the first major test of who will pay for more than two decades of death and addiction sparked by prescription opioids.”

 

“Under the terms of the Oklahoma settlement, Purdue will immediately contribute $102.5 million to establish a new foundation for addiction treatment and research at Oklahoma State University. Members of the Sackler family, who own the company but were not defendants in the case, will pay an additional $75 million in personal funds over five years. Purdue also will provide $20 million worth of treatment drugs, pay $12 million to cities and towns and cover about $60 million in litigation costs.”

 

If Newtown's case against Purdue and other opioid drug companies results in a settlement, this is how I'd like to see the money spent: on TREATMENT programs.

johnmacknewtown's curator insight, March 27, 2019 6:32 AM

As published in the Washington Post (3/27/2019): “The reckoning for the worst drug epidemic in U.S. history began Tuesday, with Purdue Pharma and the state of Oklahoma agreeing to a $270 million out-of-court settlement in the first major test of who will pay for more than two decades of death and addiction sparked by prescription opioids.”

 

“Under the terms of the Oklahoma settlement, Purdue will immediately contribute $102.5 million to establish a new foundation for addiction treatment and research at Oklahoma State University. Members of the Sackler family, who own the company but were not defendants in the case, will pay an additional $75 million in personal funds over five years. Purdue also will provide $20 million worth of treatment drugs, pay $12 million to cities and towns and cover about $60 million in litigation costs.”

Curated by johnmacknewtown
I am a retired small businessman who has lived in Newtown Township PA since 1995. The opinions expressed here are solely mine and do not represent the opinions of any other person or entity.
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This board is dedicated to promoting the value of diversity and addressing discrimination based on age, race, color, gender, religion, creed, culture, socioeconomic status, sexual orientation, ancestry, national origin and disability. These Scoops are excerpts from articles published in local newspapers and other sources. Any opinions and "insights" appended to these article summaries are solely those of John Mack and do not represent the opinions of any other person or entity.
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