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Purdue Pharma 'reaches tentative agreement' to settle opioid cases | Purdue Pharma 'reaches tentative agreement' to settle opioid cases |
(about 6 hours later) | |
Drug-making giant Purdue Pharma has reportedly reached a tentative multi-billion dollar agreement in the US to settle a host of lawsuits against it. | Drug-making giant Purdue Pharma has reportedly reached a tentative multi-billion dollar agreement in the US to settle a host of lawsuits against it. |
The firm owned by the billionaire Sackler family is accused of helping fuel the US opioid crisis through drugs like painkiller OxyContin. | The firm owned by the billionaire Sackler family is accused of helping fuel the US opioid crisis through drugs like painkiller OxyContin. |
The deal would remove Purdue from the first federal trial over the opioids crisis, set to open in Ohio in October. | The deal would remove Purdue from the first federal trial over the opioids crisis, set to open in Ohio in October. |
But the company could still face legal battles with states not in the deal. | But the company could still face legal battles with states not in the deal. |
Connecticut, Iowa, Massachusetts, Nevada, New Jersey, New York, Pennsylvania, North Carolina and Wisconsin are among those states saying they are not party to the agreement, the Associated Press reports. | Connecticut, Iowa, Massachusetts, Nevada, New Jersey, New York, Pennsylvania, North Carolina and Wisconsin are among those states saying they are not party to the agreement, the Associated Press reports. |
The reported settlement is expected to be the largest ever paid out by an opioid manufacturer. | The reported settlement is expected to be the largest ever paid out by an opioid manufacturer. |
What is in the deal? | What is in the deal? |
Purdue Pharma has been in negotiation to settle a case brought against it by more than 2,000 plaintiffs - including half the states, local governments and Native American tribes. | Purdue Pharma has been in negotiation to settle a case brought against it by more than 2,000 plaintiffs - including half the states, local governments and Native American tribes. |
US media report the deal would involve the Sacklers exiting the company before it would file for bankruptcy, dissolve and reform. | US media report the deal would involve the Sacklers exiting the company before it would file for bankruptcy, dissolve and reform. |
Profits from the business would then be directed to pay plaintiffs an amount - thought to be around $10bn-12bn (£8bn-10bn) - as well as donating drugs for addiction and overdose recovery, multiple reports say. | Profits from the business would then be directed to pay plaintiffs an amount - thought to be around $10bn-12bn (£8bn-10bn) - as well as donating drugs for addiction and overdose recovery, multiple reports say. |
The Sackler family are expected to directly contribute at least $3bn of their own personal fortune to the deal, according to the reports. | The Sackler family are expected to directly contribute at least $3bn of their own personal fortune to the deal, according to the reports. |
The tentative agreement is thought to have the support of 23 states and about 2,000 local governments - but falls short of the national settlement Purdue had been seeking, according to the Washington Post newspaper. | The tentative agreement is thought to have the support of 23 states and about 2,000 local governments - but falls short of the national settlement Purdue had been seeking, according to the Washington Post newspaper. |
A number of state attorney generals have publicly pledged to continue their legal fight against the firm. | A number of state attorney generals have publicly pledged to continue their legal fight against the firm. |
"This apparent settlement is a slap in the face to everyone who has had to bury a loved one due to this family's destruction and greed," said Josh Shapiro, Pennsylvania's top lawyer. | "This apparent settlement is a slap in the face to everyone who has had to bury a loved one due to this family's destruction and greed," said Josh Shapiro, Pennsylvania's top lawyer. |
"It allows the Sackler family to walk away billionaires and admit no wrongdoing." | "It allows the Sackler family to walk away billionaires and admit no wrongdoing." |
What is the opioid crisis? | What is the opioid crisis? |
Opioids are a group of drugs that range from codeine to illegal drugs like heroin. Prescription opioids are primarily used for pain relief but can be highly addictive. | Opioids are a group of drugs that range from codeine to illegal drugs like heroin. Prescription opioids are primarily used for pain relief but can be highly addictive. |
On average, 130 Americans die from an opioid overdose every day, according to the US Center for Disease Control and Prevention, which says more than 200,000 Americans have died from opioid-related overdoses in the last two decades. | On average, 130 Americans die from an opioid overdose every day, according to the US Center for Disease Control and Prevention, which says more than 200,000 Americans have died from opioid-related overdoses in the last two decades. |
Purdue is one of the opioid makers, distributors and pharmacies named in more than 2,000 lawsuits represented in the federal trial scheduled to begin in Ohio next month. | Purdue is one of the opioid makers, distributors and pharmacies named in more than 2,000 lawsuits represented in the federal trial scheduled to begin in Ohio next month. |
The cases allege the companies are responsible for fuelling an opioid addiction crisis in the US. | The cases allege the companies are responsible for fuelling an opioid addiction crisis in the US. |
Firms including Purdue are accused of using deceptive practices to sell opioids including downplaying their addictive quality. | Firms including Purdue are accused of using deceptive practices to sell opioids including downplaying their addictive quality. |
Purdue argued the US regulator, the Food and Drug Administration, had approved labels for OxyContin that had warnings about the risks. | Purdue argued the US regulator, the Food and Drug Administration, had approved labels for OxyContin that had warnings about the risks. |
In a separate case, Drugmaker Johnson & Johnson was ordered by a US judge to pay $572m for its part in fuelling Oklahoma's opioid addiction crisis last month. Purdue had already settled with the state for $270m earlier this year. | In a separate case, Drugmaker Johnson & Johnson was ordered by a US judge to pay $572m for its part in fuelling Oklahoma's opioid addiction crisis last month. Purdue had already settled with the state for $270m earlier this year. |
Who are the Sackler family? | Who are the Sackler family? |
Brothers Arthur, Mortimer, and Raymond Sackler were all doctors from Brooklyn, New York, who in the early 1950s bought a medicine company called Purdue Frederick which would become Purdue Pharma. | Brothers Arthur, Mortimer, and Raymond Sackler were all doctors from Brooklyn, New York, who in the early 1950s bought a medicine company called Purdue Frederick which would become Purdue Pharma. |
Today, the Sacklers' fortune is estimated at about $13bn. The family are prolific philanthropists and their name adorns wings of cultural buildings around the world - including the Louvre in Paris. | |
As the opioid scandal has engulfed the family, a number of high-profile museums - including the Tate in the UK - have announced they will no longer take money from the family. | As the opioid scandal has engulfed the family, a number of high-profile museums - including the Tate in the UK - have announced they will no longer take money from the family. |
The Sacklers have argued they were passive board members of Purdue Pharma, who approved routine management requests and were not involved with the marketing of OxyContin. | The Sacklers have argued they were passive board members of Purdue Pharma, who approved routine management requests and were not involved with the marketing of OxyContin. |
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