Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

U.S. judge urges parties to wisely use Purdue opioid settlement funds

share with twitter share with LinkedIn share with facebook
share via e-mail
0
10/10/2019 | 10:48pm EDT
FILE PHOTO: Bottles of prescription painkiller OxyContin, 40mg, 20mg and 15mg pills, made by Purdue Pharma L.D. sit on a counter at a local pharmacy in Provo

(Reuters) - A U.S. bankruptcy judge on Thursday urged parties that will benefit from a proposed settlement with OxyContin maker Purdue Pharma LP to focus on addressing the opioid addiction crisis and avoid battling over the deal's billions of dollars.

The outline of a proposed settlement that Purdue values at more than $10 billion was filed in the U.S. Bankruptcy Court in White Plains, New York on Tuesday.

The deal aims to resolve more than 2,600 lawsuits by states, local governments and other plaintiffs against Purdue and its Sackler family owners. The lawsuits accuse them of fueling a public health crisis by aggressively marketing opioids while downplaying their overdose risks, contributing to some 400,000 deaths from 1999 to 2017, according to U.S. statistics.

"No one can ignore the individual people affected by this crisis," said U.S. Bankruptcy Judge Robert Drain at a Thursday hearing. "So I hope that you all will be able to work together to use the money as wisely as possible."

Drain urged the parties to consider ways to distribute settlement funds quickly, rather than follow the usual bankruptcy practice of evaluating each creditor claim before making payments.

He mentioned as examples the litigation settlements involving victims of Vietnam War herbicide Agent Orange, the Sept. 11, 2001 attacks and the BP Plc Gulf oil spill.

Each of those cases was resolved using compensation funds overseen by attorney Kenneth Feinberg to settle large numbers of lawsuits for personal injury and other claims.

Feinberg told Reuters on Thursday that Drain appeared to be suggesting short-circuiting the bankruptcy process by encouraging the use of a protocol that lays out a category for each claim, and automatically pays a certain amount.

"That will avoid the jockeying and disagreements. That's a very creative idea. Clearly doable," said Feinberg, adding that he has not been contacted regarding Purdue.

The opioid litigation has been compared to the $246 billion settlement in 1998 between U.S. states and tobacco companies. States have been criticized for spending some of that money on budget shortfalls rather than prevention program or treating smoking-related illnesses.

Drain also said bankruptcy law could be used to bind permanently how the Purdue settlement funds were used.

On Friday, Drain will consider a request by Purdue to pause all litigation against the company and the Sacklers, which has been opposed by 25 states.

Purdue said it needs the litigation pause to try to settle with the hold-out plaintiffs.

(Reporting by Tom Hals in Wilmington, Delaware; Editing by David Gregorio and Bill Berkrot)

By Tom Hals

Stocks mentioned in the article
ChangeLast1st jan.
BP PLC -0.66% 485.05 Delayed Quote.-1.55%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
06:11pBoeing pilots' messages on 737 MAX safety raise new questions
RE
06:11pASRT AMERICAN SOCIETY OF RADIOLOGIC TECHNOLOGIST : Vacancy Rates Rise for Radiographers
PU
05:56pBANK OF JAMAICA : Press Release Bank of Jamaica Intervenes in the FX Market - Results - 18 October 2019
PU
05:36pFAA turns over emails from former Boeing 737 pilot
RE
05:34pLira may be Turkey's Achilles heel in Syria battle
RE
05:26pUtilities Up On Defensive Bias -- Utilities Roundup
DJ
05:26pCommunications Services Down On Defensive Bias -- Communications Services Roundup
DJ
05:23pTech Down Amid Trepidation On Global Growth -- Tech Roundup
DJ
05:22pFinancials Up On Brexit Bets -- Financials Roundup
DJ
05:21pWall Street pressured by global growth concerns
RE
Latest news "Economy & Forex"