Attorney General Ford Announces Confirmation of Opioids Manufacture Bankruptcy Plan
Includes Funds to Address Nevada’s Opioids Epidemic
Carson City, NV – Today, Attorney General Aaron D. Ford announced his support of the U.S. Bankruptcy Court’s decision to confirm approval of a bankruptcy plan for Purdue Pharma that will dissolve the opioids manufacturer and maker of Oxycotin. Nevada will receive a portion of the proceeds as part of the bankruptcy settlement plan, which will be used to address the opioid epidemic in the state. The State of Nevada is anticipated to receive an estimated $50 million.
“Nevada will receive much-needed funds as a result of this settlement to help combat the state’s opioid crisis, which has become even worse during the COVID-19 pandemic,” said AG Ford. “This settlement represents only a small portion of what the companies and individuals responsible for creating the opioid epidemic owe. Accordingly, we will continue to pursue litigation in our courts to hold other opioid defendants accountable for their actions and to receive what Nevada needs to fight the devastating effect of opioids on our state and its residents.”
In a lawsuit filed by Office of the Nevada Attorney General, Nevada alleges that Purdue Pharma and the Sackler family are primarily responsible for starting the deadly marketing campaign that led to the deaths of thousands of Nevadans. Purdue Pharma filed for bankruptcy shortly after Nevada filed its complaint in 2019.
While the bankruptcy court has confirmed approval of the bankruptcy settlement plan, it will take time for the bankruptcy trustee to liquidate the assets according to the plan and determine how much money Nevada and other states and creditors will receive. The Office of the Attorney General will be submitting a recent agreement entered into by every county and litigating local government in Nevada to the bankruptcy trustee for anticipated approval.
With bankruptcy trustee approval, the funds will be distributed among the state, counties and litigating cities in a fair and equitable manner as part of the terms of the allocation agreement. The money will be used in evidence-based programs and infrastructure to combat the effects of opioids on the state and its residents.
In the settlement plan, Purdue Pharma agreed to dissolution of the company, and the assets will shift to a new company which will be sold at the end of approximately three years. In addition, the Sackler family, which owned the company since its inception, will contribute approximately $4.3 billion to the total monetary amount and will relinquish control of the company. Purdue will also make several million documents public in a repository as a part of injunctive terms.
The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York confirmed approval of the plan Wednesday morning.