Purdue Pharma Bankruptcy Sparks Controversy Over Opioid Painkillers... Agrees to Pay Settlement of About 5 Trillion Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Purdue Pharma, the pharmaceutical company that triggered the opioid crisis?a serious social issue in the United States?will pay a settlement worth about 5 trillion won and ultimately declare bankruptcy.

According to the Wall Street Journal (WSJ) on the 1st (local time), the U.S. bankruptcy court approved a bankruptcy settlement between Purdue Pharma, its owner the Sackler family, state governments, and the victims involved.

Under the settlement, Purdue Pharma and the Sackler family must pay a total of $4.5 billion (approximately 5.2101 trillion won) over the next nine years.

Afterward, Purdue Pharma presented a restructuring plan to undergo bankruptcy proceedings and convert into a public benefit company. Accordingly, the Sackler family will be exempt from additional legal liabilities.

However, the New York Times (NYT) reported that controversy is inevitable as the settlement amount falls short of expectations and the court’s approval of the bankruptcy effectively grants the Sackler family a de facto pardon.

Some states, including Connecticut and Washington, are reportedly preparing to appeal.

According to the ruling, the billionaire Sackler family has already moved a significant portion of their assets to offshore accounts.

The court condemned the Sackler family, stating, "This is a bitter decision," but explained that approval was decided because further delays in the ruling would cause greater additional harm to the victims.

Earlier, Purdue Pharma filed for bankruptcy protection in the New York federal court in 2019, admitting guilt related to the opioid crisis and agreeing to pay a large fine.

Opioids, narcotic painkillers called "opioids," are synthetic components such as fentanyl and codeine that produce effects similar to opium and are prescribed to alleviate severe pain experienced by post-surgery patients or cancer patients.

However, they have spread as substitutes for narcotics in North America, becoming a social problem.

The NYT pointed out that this ruling will set an important precedent in ongoing lawsuits related to the opioid crisis, including those involving Johnson & Johnson.

Pharmaceutical company Johnson & Johnson and major distributors McKesson, AmerisourceBergen, and Cardinal are reported to have reached a settlement worth $26 billion (approximately 30 trillion won) with state governments that filed related lawsuits.

This content was produced with the assistance of AI translation services.