NEW YORK (Reuters) – US states claim $ 2.2 trillion in damages for OxyContin maker Purdue Pharma LP’s suspected role in America’s opioid epidemic, accusing drugmaker in new submissions press presenting painkillers on physicians and patients while playing the risks of abuse and overdose.
FILE PHOTO: Bottles Prescribed Painkillers OxyContin Pills, made by Purdue Pharma LP sit on a counter at a local pharmacy in Provo, Utah, FS, April 25, 2017. REUTERS / George Frey / File Photo
In filings filed as part of Purdue’s bankruptcy proceedings that were made public Monday, states said Purdue, backed by the wealthy Sackler family, contributed to a public health crisis that has claimed the lives of some 450,000 people since 1999. and penalties imposed on health care and criminal justice systems. The reports mentioned more than 200,000 deaths in the U.S. directly between unions on prescription opioids between 1999 and 2016.
In large states like California and New York, the claims alone were more than $ 192 billion and $ 165 billion, respectively. Thirty-nine U.S. states, Washington, DC and several areas make the claims. Oklahoma settled lawsuits with Purdue last year.
Purdue filed for bankruptcy in 2019 under pressure from more than 2,600 lawsuits brought by cities, counties, states, Native American tribes, hospitals and others. The lawsuits said the company, and in some cases the Sacklers, used deceptive marketing and took other wrong steps to flood communities with prescription opioids.
The company and family have denied the allegations and are committed to helping them fight the opioid epidemic, including by providing drug treatment and medication for overdose reversal under development.
In response to state demands, Purdue said it is continuing to work on resolving legal actions and escaping bankruptcy, and that it is typical that claims by various creditors have been “submitted in amounts far greater than what was ultimately awarded by the court.” is allowed. ”
Sackler representatives did not immediately respond to requests for comment.
Purdue and the Sacklers have pointed to fentanyl and heroin as major culprits in the opioid crisis. However, states in their submission to the National Institute for Drug Abuse Research estimated that about 80% of heroin addicts had previously taken prescription opioids.
In addition to state allegations, Purdue is suing the U.S. Department of Justice for more than $ 18 billion in damages on possible fines as a result of criminal and civil investigations.
In lawsuits related to Purdue’s bankruptcy case, federal prosecutors said Purdue contributed to false claims made to federal health insurance programs by allowing doctors to prescribe medically unnecessary opioid prescriptions that were sometimes tainted by illegal kickbacks, according to one person who is familiar with the matter.
The Department of Justice also alleges possible fines arising from allegations that Purdue violated the U.S. Food, Drug and Cosmetic Act and violations of federal conspiracy and anti-kickback laws, the person said.
The Department of Justice declined to comment on the claims.
Claims by state and federal prosecutors are being processed after they are filed just before a July 30 deadline set by a U.S. bankruptcy judge. While they will collectively exceed trillions of dollars, the applications are in many cases placeholders as opposed to roadmaps for how much money Purdue will eventually pay its creditors, most of whom are US, state and local governments.
Purdue is only worth a little more than $ 2 billion if it is liquidated. The company values a proposal to regulate legal action, including offering addiction treatment and drugs with overdose reversal, at more than $ 10 billion. The Sacklers would contribute $ 3 billion and leave control of Purdue, making the company a trustee on behalf of complainants.
Those financial realities underscore that Purdue does not have enough money to satisfy the hefty claims against it.
States and other legal entities are in talks to determine how the proceeds of Purdue’s bankruptcy money will be allocated as part of the company’s attempted reorganization. Many states, including Massachusetts, New York and Connecticut, have opposed Purdue’s offer of deposits, insisting that the Sacklers contribute more money and reveal more details about their finances.
Report by Mike Spector; edited by Grant McCool
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