HARTFORD, Conn. — OxyContin maker Purdue Pharma reached a tentative deal Wednesday with about half the states and thousands of local governments over its role in the nation’s deadly opioid epidemic, but criticism by state attorneys general clouded prospects for an end to litigation against the company and the family that owns it.
Greenfield Mayor William Martin said it’s unclear whether Greenfield is among the municipalities included in the settlement, with the city having been the first in Massachusetts to file a lawsuit against opioid distributors or manufacturers in December 2017. He said the city hasn’t heard from its attorney, but received an update on the lawsuit in its last monthly report.
“We get monthly reports, prior to a publication of global settlement,” Martin said. “We’re not certain if we are included in the 2,000 municipalities in the settlement; we are part of a multi-district suit.”
As the city is formally part of a suit, Martin said he’ll wait to receive notice in writing.
The agreement with about half the states and attorneys would have Purdue file for a structured bankruptcy and pay as much as $12 billion over time, with about $3 billion coming from the Sackler family. That number involves future profits and the value of drugs currently in development. In addition, the family would have to give up its ownership of the company and contribute another $1.5 billion by selling another of its pharmaceutical companies, Mundipharma.
The lawsuits assert that Purdue aggressively sold OxyContin as a drug with a low risk of addiction despite knowing that wasn’t true. In court filings, Purdue has pointed out that its products were approved by federal regulators and prescribed by doctors.
Greenfield’s 2017 lawsuit was filed against not only Purdue Pharma, but other big-name companies like Teva Pharmaceuticals, Johnson & Johnson and Janssen Pharmaceuticals.
“Greenfield was identified as a crisis community because there was poor service and treatment available,” Martin said. “These have improved, including the addition of a residential treatment program.”
Martin expressed confidence that other communities are coming up with solutions similar to Greenfield.
“I’m sure all the other municipalities and attorney generals have great ideas for providing treatment and any type of reparations for the families,” Martin added. “I think it’ll work out in the end.”
Martin compared the lawsuit to a class-action lawsuit filed by Vietnam veterans, where makers of Agent Orange paid a $180 million settlement. At the time, $180 million seemed like a large sum of money, but was not enough.
“It was barely enough to take care of veterans with a little set aside for children of veterans,” Martin said. “We’re still waiting to find out the details on what’s best for getting Purdue and the Sacklers to contribute a greater amount. When we think of the $3 billion that they are going to contribute and abandon the company and etc. — we don’t know what it will be valued at next month or next year. Like most litigation, it’s about hurrying up and waiting.”
Even with Wednesday’s development, roughly half the states had not signed on and several state attorneys general vowed to continue their legal battles against the company and the Sacklers. Massachusetts Attorney General Maura Healy said she remains opposed to the deal.
“The families who were hurt by Purdue and the Sacklers have spoken loud and clear that this case demands real accountability, and I will continue to fight for that,” Healy said in a statement Wednesday. “It’s critical that all the facts come out about what this company and its executives and directors did, that they apologize for the harm they caused, and that no one profits from breaking the law. These families deserve justice.”
Associated Press information from reporters Geoff Mulvihill, Dave Collins and Jonathan J. Cooper was included in this report.