A federal judge has decided that victims of the opioid epidemic have the right to sue Purdue Pharma for damages, but all claims must be filed by June 30, 2020. This is when the company will begin its bankruptcy proceedings.
Purdue has also reached a settlement with a portion of some states and local governments. Although the settlement amount has not been disclosed, it’s been reported that it could be worth more than $10 billion. The presiding Judge, Robert Drain, says it’s important to note that an official amount for settlement has not yet been reached.
What is Purdue Settling For?
Purdue Pharma has faced hundreds of lawsuits accusing them of creating the opioid epidemic that has killed tens of thousands of Americans in the past several years. They are accused of using coercive marketing tactics with doctors, even though they knew there were addictive properties in their opioids like Oxycontin. They often would encourage doctors to “titrate up” patients, even though the level of pain medication prescribed to some patients was inappropriate.
For the past several years, state and local governments have been embroiled in lawsuits with Purdue Pharma, suing for compensation to help them cope with the fallout from the nation’s addiction crisis. Along with victims, all government entities, hospitals, and others who feel that they were harmed by the makers of Oxycontin will be able to state their claim before the company goes insolvent.
Filing a Claim Against Perdue Pharma
That there is no guarantee that people who file personal injury claims against Purdue will end up with any money. The judge presiding over the case, however, wants to hear the stories of people who feel they were harmed by the pharmaceutical giant. Their names will go on the lawsuit record if nothing else. It’s also a chance for Purdue to be held responsible for the enormous damage the opioid crisis has caused in families and communities.
Once a settlement deal is approved, Purdue is going to restructure. This means that they won’t go out of business, but the courts must approve of their direction. Once this has been decided, the judge will be able to decide how to divide the company’s assets.