Purdue Pharma exit plan gains steam with OK from more states, including NC

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RALEIGH, N.C. (WWAY) — OxyContin maker Purdue Pharma’s plan to reorganize into an entity whose profits will be used to combat the opioid crisis in America got a big boost todays with 15 states dropping their objections to the new business model.

The agreement from state attorneys general was disclosed in a U.S. Bankruptcy Court filing late Wednesday.

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North Carolina Attorney General Josh Stein released a statement on the plan earlier today, saying:

“Purdue Pharma helped to create and fuel the opioid epidemic that is responsible for the death or sickness of millions of Americans. Purdue pushed incredibly addictive and deadly painkillers on the public to make billions of dollars for itself and its owners, as our lawsuit alleges. Meanwhile, North Carolina families paid the price, torn apart by addiction.

“No amount of money will ever make things right between affected families and Purdue and its owners, the Sacklers. While this plan is far from perfect, allowing it to move forward now is the best way to ensure that billions of dollars in desperately-needed funding flows to the communities in North Carolina and across the country. These funds will help provide treatment and recovery services to people who are struggling with opioid addiction.

“Thanks to this agreement, thousands of North Carolinians will receive life-saving treatment and recovery services, Purdue Pharma as we knew it will come to an end, the Sacklers will be barred from ever participating in the pharmaceutical business again, and the Sacklers are personally paying $4.5 billion, an increase of $1.5 billion over the initial plan I opposed.”

If the plan is confirmed by the bankruptcy court, North Carolina’s funds will be distributed to local governments and the State under the terms of the Memorandum of Agreement announced on April 30, 2021.

Exact funding distributions are yet to be determined, but it is estimated that North Carolina will receive approximately $100 million.

A copy of the plan is available here.