15 states drop opposition to OxyContin maker Purdue’s bankruptcy plan

More than a dozen states have dropped their objections to a controversial bankruptcy plan for opioid-maker Purdue Pharma, clearing the way for its adoption.

According to court documents filed by a mediator late Wednesday, fifteen state attorneys general accepted the $4.5 billion settlement deal after Purdue agreed to additional concessions.

The plan now calls for tens of millions of internal documents related to the Sackler family and Purdue’s marketing of OxyContin to be publicly released, including all the transcripts and audio of the bankruptcy trial depositions.

The Sackler family, which owns Purdue Pharma, would also boost the monetary settlement by a modest $50 million paid in two $25 million installments. Purdue Pharma, which has not actively marketed OxyContin for two years, will be wound down or sold by 2024.

As recently as last month, 24 states and the District of Columbia objected to the proposed settlement, saying it failed to hold individual shareholders appropriately accountable. They said the settlement amounted to a “stretched-out payment of only a tiny fraction” of the Sacklers’ liability.

Sticking point: The Sacklers did not declare bankruptcy, but the settlement plan would shield members of the family from future opioid lawsuits. They would admit no wrongdoing, and would retain much of the fortune they made from Purdue. In return, they would give up ownership of the company and pay more than $4 billion in cash and charitable assets.