Colorado Politics

Weiser: Colorado would get at least $50 million in proposed resolution with Purdue Pharma

The family behind drug maker Purdue Pharma has agreed to pay at least $4.3 billion as reparations for their role in the opioid crisis and would be permanently banned from the opioid business, according to a proposal that now has support from more than a dozen state attorneys general. 

Colorado Attorney General Phil Weiser announced his support Thursday for the latest proposal for resolving lawsuits over the opioid epidemic. The agreement will publicize more than 30 million documents that have served as evidence in lawsuits and investigations of Purdue in the past two decades. The documents relate to Purdue and the Sackler family’s role in the opioid crisis that has caused 5,000 overdose deaths in Colorado since 2001.

According to a news release, the trove of documents will include privileged attorney-client communications, information about Purdue’s manipulation of the FDA’s original approval of the company’s signature drug, OxyContin, and marketing tactics Purdue used to promote it.

More than a dozen other states have also signed on to the settlement, according to The Wall Street Journal.

In 2007 Purdue and some executives pleaded guilty to fraudulent and deceptive marketing, and the news release says the documents released will show Purdue transferred billions of dollars to the Sacklers after the pleas.

The company has been accused of downplaying the addictiveness of OxyContin and pushing doctors to prescribe opioids for pain management, fueling an upswing  of addiction. 

The billions of dollars the Sacklers have agreed to pay over nine years would go toward efforts for opioid addiction prevention, treatment and recovery in communities throughout the U.S. The news release sent by Weiser’s office says it is one of the biggest amounts in U.S. history paid by individuals to resolve a law enforcement action.

Colorado could expect to receive at least $50 million of the funds, says the release.

“On account of this epidemic, so many families have lost loved ones; this action is taken with them in mind,” Weiser said in the release.

Purdue’s reorganization plan is still pending in bankruptcy court in the Southern District of New York. According to the release, billions more dollars will be available to mitigate the opioid crisis once the plan receives approval. Also as part of the reorganization plan, Purdue will sell or wind down all its business operations by the end of 2024.

Under the terms of the Reorganization Plan, the Sacklers will be permanently banned from the opioid business, and all business activities of Purdue Pharma will be sold or disbanded by the end of 2024.

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