Attorney General Mark Herring joined 23 other states to express his disappointment in the plan Purdue Pharma plan filed in bankruptcy court.
With the $10 billion bankruptcy plan, Purdue Pharma proposes to change into a different company that will use some of its profits to help the U.S. fight the opioid crisis.
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Herring said after the long investigation conducted by states, Purdue and the Sacklers, the family who owns the company, need to take accountability for their role in creating the opioid crisis.
“We are disappointed in this plan. While it contains improvements over the proposal that Purdue announced and we rejected in September 2019, it falls short of the accountability that families and survivors deserve,” Herring said.
This Purdue Pharma plan follows a trial in October 2020 where Purdue Pharma pled guilty to three counts tied to an opioid addiction and overdose crisis linked to more than 470,000 deaths in the country since 2000, according to the Associated Press.
Those charges include:
- Conspiracy to defraud the U.S.
- Violating federal anti-kickback laws
- Marketing opioids to doctors that it suspected of writing illegal prescriptions
Herring said that Purdue needs to adjust its plan to provide for the following:
- A company wind-down that does not entangle it with states and other creditors
- Additional value from the Sacklers to creditors, including the states, to confront the opioid crisis that is causing so much pain
- Transparency through document disclosures so Purdue’s and the Sacklers’ misconduct is made known to the public
- Protections for nonprofits over naming rights for charitable gifts
