Purdue Pharma has filed a brand new chapter plan as a part of a $7.4 billion settlement to resolve hundreds of lawsuits over the corporate’s alleged position within the opioid disaster, months after the Supreme Courtroom blocked a previous deal.
The bankrupt firm introduced Tuesday it had filed a Chapter 11 Plan of Reorganization within the U.S. Chapter Courtroom for the Southern District of New York.
In June final yr, the Supreme Courtroom blocked a settlement deal, discovering that the Sackler household who beforehand managed Purdue Pharma couldn’t be launched from legal responsibility beneath federal regulation, regardless of contributing $6 billion to the settlement.
“Following the 2024 Supreme Court ruling, we doubled down on our commitment to work with our creditors to design a new Plan that delivers unprecedented value to those affected by the opioid crisis. Today’s filing is a major milestone in that effort,” Purdue Board Chairman Steve Miller stated in a press release.
“We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good,” added Miller. “I sincerely thank our stakeholders for his or her dedication and collaboration, and I look ahead to having the plan confirmed and consummated as shortly as doable.”
In January, Purdue Pharma and the Sacklers agreed in precept to pay a $7.4 billion settlement to resolve the multitude of lawsuits, elevating the settlement by an extra $1.4 billion. The court docket submitting on Tuesday expands on this plan.
Purdue Pharma argued this reorganization is more likely to succeed, writing, “The Debtors’ reorganization is plainly in the public interest and favored by a balancing of the harms. The Debtors’ proposed plan will devote billions of dollars to public opioid abatement and creditor recoveries.”
