Sept. 1, 2021
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.
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