Illinois Drops Opposition To Purdue Pharma Bankruptcy

CHICAGO —Illinois Attorney General Kwame Raoul on Thursday explained why Illinois became one of 15 states to drop opposition to the controversial bankruptcy plan for OxyContin-maker Purdue Pharma. He said agreeing to support a mediator's proposal will improve the terms of the original bankruptcy, while also bringing a resolution in the case.

NPR reported that 15 states, out of 24 that had opposed the bankruptcy, agreed to the new deal in court documents filed by a mediator late Wednesday as part of a federal bankruptcy proceeding in White Plains, New York.

The settlement plan, which is now all but certain to be finalized next month, would shelter members of the Sackler family, who own Purdue Pharma, and many of their associates from future opioid lawsuits.

In return, the Sacklers have agreed to give up ownership of the bankrupt drug company, boost their settlement payments and release more documents, providing more transparency about Purdue Pharma's role in the opioid epidemic.

"I have been committed to reaching an agreement that holds Purdue and the Sackler family accountable for the opioid epidemic, which is why my office has worked diligently with a group of states advocating for increased accountability and transparency in a settlement agreement," Raoul said in a Thursday statement.

Raoul added: "It is time to reach a resolution to the litigation, so that we can ensure funds are dispatched to communities in order to support recovery efforts in Illinois and throughout the nation."

As part of the revised deal, the Sacklers will pay out roughly $4.2 billion from their private fortunes in installments spread over the next decade, NPR reported. The Sacklers also have agreed to boost their settlement payment by roughly $50 million, according to the mediator's report.

"In addition to paying more money, this proposal requires them to provide more of the money sooner." Raoul said.

Though Purdue Pharma already has produced 13 billion documents during the course of litigation, The New York Times reported the new settlement will add 20 million more. The documents will include depositions, emails and letters reaching back two decades.

Massachusetts Attorney General Maura Healey, who like Raoul had opposed the bankruptcy plan as recently as last month, told NPR the new deal brought significant accountability.

"While I know this resolution does not bring back loved ones or undo the evil of what the Sacklers did, forcing them to turn over their secrets by providing all the documents, forcing them to repay billions ... will help stop anything like this from ever happening again," Healey said.

The other states now abandoning their opposition to the deal are: Colorado, Hawaii, Idaho, Iowa, Massachusetts, Maine, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Virginia and Wisconsin.

Nine states have yet to agree to the Purdue Pharma bankruptcy plan. They include: Connecticut, California, Delaware, Maryland, New Hampshire, Oregon, Rhode Island, Vermont and Washington. The District of Columbia also hasn't agreed to the deal.