Attorney General Todd Rokita said Tuesday that opioid manufacturer Purdue Pharma’s bankruptcy plan represents an important step toward making sure Hoosiers impacted by the devastating opioid epidemic receive the resources necessary to recover from the ongoing crisis.
“Thousands of Hoosiers have lost their lives to opioid overdoses in the last several years, and I am encouraged that this plan will lead to much-needed and long-overdue aid for our citizens,” Attorney General Rokita said. “The opioid epidemic continues to plague our great state, and I will do all I can to see that this plan helps end our citizens’ suffering.”
On Tuesday, Purdue Pharma filed its bankruptcy plan for consideration before the United States Bankruptcy Court for the Southern District of New York. The $7 billion proposal is a combination of company assets and a guaranteed $4.275 billion from the Sackler family – a contribution almost 50% greater than what the family offered two years ago.
The terms also sever the Sacklers’ control and ownership of Purdue Pharma, effectively removing them from any involvement in U.S. opioid sales. Furthermore, the plan states that Purdue Pharma’s assets will be transferred to a new company, which will emerge from the bankruptcy with an independent board of directors and oversight by a court-appointed monitor.
While the proposed plan is an important first step, Attorney General Rokita promised to continue negotiating with Purdue Pharma, along with other states, to achieve the best possible solution for Hoosiers.
“When I ran for attorney general, I pledged to relentlessly protect Hoosiers. I will uphold this commitment and work with Purdue Pharma until we reach a deal that will help all Hoosiers move forward from this crisis,” Attorney General Rokita said.
In February, Attorney General Rokita announced that Indiana will receive more than $12.5 million as part of a multistate settlement with McKinsey & Company, one of the world’s largest consulting firms.
The firm contributed to the opioid epidemic by selling aggressive marketing schemes and consulting services to opioid manufacturers, including Purdue Pharma.
Indiana’s $12,579,158 share of the McKinsey settlement will be used to fund prevention, education, and treatment efforts in local communities.