However, the court approved a deadline of 4 p.m. Wednesday as the voting deadline on the plan, Beavercreek law director Stephen McHugh noted in a letter to city officials. McHugh recommended the city accept the plan. Bellbrook was expected to vote Monday night on a resolution to accept the plan.
Hamilton city law director Letitia Block said the city had voted in favor of the plan and believes the plan “represents a reasonable resolution of the city’s opioid-related claims against Purdue.”
“The alternative is to engage in risky and expensive civil litigation that will take years to fully resolve and which will result in delayed and inequitable recoveries among potential claimants,” Block said, adding that meanwhile the city would have received no resources toward abating ongoing problems.
The Associated Press reported the agreement from multiple state attorneys general, including those who had most aggressively opposed Purdue’s original settlement proposal, was disclosed late July 7 in a filing in U.S. Bankruptcy Court in White Plains, N.Y. It followed weeks of intense mediations that resulted in changes to Purdue’s original exit plan.
Still, nine states and the District of Columbia did not sign on. Purdue said in a statement that it will try to build “even greater consensus” for its plan.
Purdue first sought bankruptcy protection in 2019 as a way to settle about 3,000 lawsuits it faced from state and local governments and other entities, accusing it of fueling the addiction crisis with its marketing of an addictive painkiller.
The Sacklers are not admitting any wrongdoing and no court has found any by a family member.
“While I know this resolution does not bring back loved ones or undo the evil of what the Sacklers did, forcing them to turn over their secrets by providing all the documents, forcing them to repay billions, forcing the Sacklers out of the opioid business, and shutting down Purdue will help stop anything like this from ever happening again,” Massachusetts Attorney General Maura Healey, one of the first to sue, had said.
Purdue’s plan also calls for members of the Sackler family to give up ownership of the Connecticut-based company as part of a sweeping deal it says could be worth $10 billion over time. That includes the value of overdose-reversal drugs the company is planning to produce.
The opioid crisis includes overdoses involving prescription drugs as well as illegal ones such as heroin and fentanyl. Purdue’s bankruptcy case is the highest-profile piece of complicated nationwide litigation against drugmakers, distribution companies and pharmacies.
Trials against other companies in the industry are playing out in California, New York and West Virginia, and negotiations are continuing to settle many of the claims.
Associated Press contributed to this report.
The story so far: Purdue Pharma lawsuit
Previously: OxyContin maker Purdue filed for bankruptcy in 2019 to settle about 3,000 lawsuits, including from local governments in Southwest Ohio.
What’s new: Purdue, and the managing Sackler family, agreed to new concessions, which brought more parties onboard with the settlement. Local governments are now being presented with the terms and can vote yes or no.
What’s next: July 14 is the voting deadline on the settlement plan.