Pharmaceutical company Purdue Pharma, which recently filed for bankruptcy after thousands of lawsuits alleged that the company helped fuel an opioid epidemic in the United States, moved up to $13 billion in profits to the company’s controlling family, the Sacklers, according to an unspecified number of U.S. states.
Since the introduction of OxyContin in 1996, addiction and overdoses have surged. More than 2,600 lawsuits assert that Purdue aggressively sold OxyContin as a drug with a low risk of addiction, despite the company knowing it wasn’t. The privately held company now aims to restructure under terms of a proposal to settle the widespread litigation.
The amount transferred to the family was significantly larger than the amount previous lawsuits alleged the Sacklers took out of Purdue, which was roughly $4 billion.
The Sackler family didn’t respond to a request for comment for this article in relation to the money transfers. They have previously denied contributing to the opioid epidemic.
According to Purdue, their settlement restructure is estimated to provide “more than $10 billion” in value to address the deadly opioid crisis.
However, the attorneys general have objected to Purdue’s settlement request, raising the financial transfers to the Sacklers in their legal arguments. So, too, did lawyers representing 500 cities, counties, and Native American tribes, according to an earlier court filing.
The company denies any wrongdoing, and Miller previously told reporters in a conference call that it doesn’t intend to admit to any misconduct.
Criminal Charges
Some critics say the billions of dollars Purdue and the Sackler family will pay isn’t enough. Attorneys told The Epoch Times in September they believe criminal charges could be warranted.“The abuse has been worldwide and abuse has been the rule, as opposed to the exception,” he said. “That kind of knowledge has to be investigated and I believe it should be investigated criminally.”
“If this is the case, as has already been reported in the media, a bankruptcy judge may not allow the Sackler family to profit from these unlawful transactions,” he said. “As such, a bankruptcy judge may attempt to disgorge personal assets of the Sackler family in order to attempt to make creditors whole.”