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Purdue Pharma’s $12B Tentative Settlement Faces Push Back from State AG’s

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  • Purdue Pharma reached a potential $12 billion settlement with 23 states and more than 2,000 individual cases accusing the company of driving the country’s opioid crisis.
  • Under the details of the agreement, the company’s owners — the Sacklers —would need to pay $3 billion of the total, apply Purdue for bankruptcy, and dissolve the company.
  • A new company would then form, continuing to sell the painkiller OxyContin while also donating addiction treatment and overdose reversal drugs.

Tentative $12B Settlement

Purdue Pharma tentatively reached a massive settlement with more than 2,000 local governments after being sued for propagating by the United States’ opioid crisis, a move that will reportedly cost the company $12 billion dollars.

The settlement, agreed upon by 23 states, also stipulates that the owners of Purdue — the Sackler family — must relinquish their ownership and pay $3 billion of the grand total over a seven-year period. 

Forbes estimates the Sacklers net worth at $13 billion, but the family’s penalty might actually end up coming from the sale of their overseas pharmaceutical company Mundipharma. If, however, the Sacklers make more than $3 billion from the sale of Mundipharma, they could end up paying up to another $1.5 billion.

Purdue manufactures OxyContin, an opioid painkiller that many have claimed drove the opioid crisis the country currently faces. The conglomeration of lawsuits against Purdue seeks to hold the company accountable for hundreds of thousands of overdoses beginning in the mid-1990s.

Purdue would also be expected to file for Chapter 11 bankruptcy, effectively dissolving the company. That, in turn, would allow the formation of a new company that would continue to sell OxyContin and other medicine. Money made from those sales would then help pay alleged victims from the lawsuits.

Additionally, Purdue would donate addiction treatment and overdose reversal drugs.

“Purdue Pharma continues to work with all plaintiffs on reaching a comprehensive resolution to its opioid litigation that will deliver billions of dollars and vital opioid overdose rescue medicines to communities across the country impacted by the opioid crisis,” the company said in a statement.

Notably, the settlement allows Purdue to avoid publishing an admission of wrongdoing. 

The agreement, however, is not finalized. The company’s board must still agree to the settlement, and a bankruptcy court judge must also approve it.

If the settlement goes through, Purdue will avoid an upcoming October trial in Cleveland, which would be the first federal trial involving a company potentially being held accountable for the opioid epidemic. Attorneys who support the agreement said it is a better solution than a long trial that might not yield better results. 

In August, Johnson & Johnson became the first pharmaceutical company to lose a lawsuit concerning the opioid crisis when it was forced to pay $572 million to the state of Oklahoma. Purdue was also implicated in the same lawsuit, but it settled with Oklahoma to pay $270 million. 

In 2007, the company and three executives were forced to shell out $635 million after pleading guilty to lying to doctors and the public about OxyContin’s safety. 

Response From States

While the settlement would push a large sum across the country, more than half of the states’ attorneys general criticized the tentative settlement, arguing the amount to be paid does not offset the amount governments have spent and will need to spend to fight the opioid crisis. 

It comes in spite of the executive committee of lawyers representing all of the cases recommended states accept the deal. 

Because of their response, that has led some commentators to question whether or not a bankruptcy judge will accept the proposal. Now, some of those state attorneys general — including those for Virginia, North Carolina, and Delaware — said they will go after the Sacklers directly.

“These people are among the most responsible for the trail of death and destruction the opioid epidemic has left in its wake,” North Carolina Attorney General Josh Stein said of the Sackler family. 

Several Democratic presidential hopefuls have suggested taking criminal action against either the company or potentially the Sacklers through proposed legislation.

“If no Sacklers end up behind bars, an entire class of people will continue to feel that writing a check is the worst thing that will happen to them ever no [matter] what they do,” Keith Humphreys, a drug policy expert at Stanford, said.

In a statement, the family said it “supports working toward a global resolution that directs resources to the patients, families and communities across the country who are suffering and need assistance. This is the most effective way to address the urgency of the current public health crisis and to fund real solutions, not endless litigation.”

Other attorneys representing various states called the agreement a win and “historic.” 

“Sadly, this agreement cannot bring back those who have lost their lives to opioid abuse,” Ashley Moody, the state attorney general for Florida, said, “but it will help Florida gain access to more life-saving resources and bolster our efforts to end this deadly epidemic.”

See what others are saying: (New York Times) (CNN) (Washington Post)

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Milwaukee Officer Buys Children Car Seats Instead of Ticketing Mother

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  • When a Milwaukee officer pulled over a woman for not having proper registration, he noticed her young children did not have car seats.
  • Instead of writing the single mother of five a ticket, he went out and purchased two car seats, then delivered them to her home and installed them in her car. 
  • The officer has been praised by the family and his department for “going above and beyond” his call of duty.

Officer Pulls Mother Over 

A Wisconsin police officer is being praised for reaching into his own pocket to help out a single mother and her children. 

On Oct 12, Milwaukee Police Officer Kevin Zimmerman pulled over Andrella “Lashae” Jackson for not having proper registration.

When the officer approached, he noticed Jackson’s children were not in car seats. “I see three kids in the backseat and two are very young,” Zimmermann told local news station WTMJ. “I didn’t observe any child restraints or even seat belts and I asked why the kids aren’t in car seats. She said she can’t afford them at this time.”

Jackson told him she had just purchased the vehicle from an auction, didn’t have time to register it, and was struggling financially. 

“With bills coming up and winter coming up, I have to get coats and boots and shoes for my kids,” Jackson told the news station. “So it was hard for me.”

Zimmerman’s Generous Gift 

After hearing a bit about her situation, Zimmerman let her go with a warning rather than citing her with a hefty ticket for the violation. Later that day, he went to a Walmart store to purchase two car seats for the children himself. 

Officer Zimmerman, a 12-year Milwaukee Police Department veteran, also stopped by the station to pick up stickers and children’s books for Jackson’s daughters. 

He then visited the family’s home and installed the car seats himself. “I got these for you and your kids so your kids can be safe and you don’t have to worry about at least this part of the situation you’re in,” Zimmerman said he told Jackson.  

The officer told CNN that he was raised to “do the right thing even if no one is looking.” He explained that after years of seeing serious traffic accidents where children went through windshields, he knew helping keep her children safe was a priority.

“I didn’t do this to be praised…I did it because I’m a parent and I didn’t want nothing to happen to these kids. “ 

According to the department, children without proper seating in cars is a problem they often see. This year alone, MPD has issued 122 citations for children not being properly restrained. Of those, 77 were issued to parents with children under the age of 4. 

Car seats can play a major role in saving a child’s life should they ever be involved in an accident. According to the Centers for Disease Control, a properly installed and size-appropriate car seat or booster seat reduces the risk for injury in a crash by 71-81% for children when compared to seatbelt use alone.

“I am a dad of three kids and can’t imagine anything happening to them or not being able to have them secured in their car seats,” Zimmerman said.

Officer Praised 

Jackson was ecstatic about the officer’s kind act and took to Facebook to share her story. 

“My girls could not stop thanking him and it made them smile,” she wrote. “ Shout out to Officer Zimmerman at District 5.”

She also told WTMJ, “He is awesome. I really love him. I really appreciate everything he did for us.” 

The department also got wind of the story and thanked their officer in a Facebook post, writing, “Thank you Officer Zimmerman for going the extra mile and going above and beyond your call of duty.

See what others are saying: (CNN) (WTMJ) (ABC 13)

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Video Shows High School Coach Hugging Student After Disarming Him

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  • A high school athletic coach in Oregon is being hailed a hero for disarming a teen with a shotgun and then embracing him as he cried in newly released surveillance video. 
  • Prosecutors and defense attorneys agreed that the student was not planning to carry out a mass shooting but instead showed signs that he was planning to take his own life.
  • He was sentenced to 36 months of probation and will receive mental health and substance abuse treatment. 

The Footage

Surveillance footage released Friday shows a high school athletic coach in Oregon disarming a student carrying a loaded shotgun, then embracing the teen who broke down in tears.

The video, released by the Multnomah County District Attorney’s Office, shows the incident which took place on May 17 at Parkrose High School. In it, Coach Keanon Lowe is seen moving away from the 18-year-old student and holding the shotgun out of his reach in the hallway.

Lowe appears to be talking to the student and keeping him at a distance with one hand until a nearby teacher grabs the gun from Lowe and moves away with it.

Once the gun is out of the picture, Lowe wraps his arms around the student, who starts to cry. At times it looks like the student tries to break free of the hug, but Lowe continues his hold and the teen gives in.

Student’s Suicide Attempt 

The district attorney’s office said the student had been suicidal for months leading up to the incident. 

Both prosecutors and defense attorneys agree evidence suggested this was not a potential mass shooting case. Instead, the student’s attorney, Adam Thayne, explained to the judge that the teen planned to take his own life at the school so that his mother would not have to discover his body. Authorities say the gun was loaded with one round, marked with the words, “The last red pill 5-17-19 just for me.”

Another student who had noticed the teen’s troubled state of mind reported him to the administration for “suicidal statements.” Lowe was on his way to bring the teen into the school’s office when the incident happened. 

The district attorney said the student was “visibly upset” as he headed for the classroom where Lowe had just arrived. The student then pulled out the firearm from beneath his coat, prompting students and staff to flee.

The district attorney said he turned the gun on himself and tried to fire, but the weapon did not discharge. That’s when Lowe took action. 

“I saw the look in his face, look in his eyes, looked at the gun, realized it was a real gun, and then my instincts just took over,” Lowe said at a press conference after the incident. “I lunged for the gun, put two hands on the gun.”

“I felt compassion for him. A lot of times, especially when you’re young, you don’t realize what you’re doing until it’s over,” Lowe explained.

“Obviously, he broke down and I just wanted to let him know that I was there for him. I told him I was there to save him. I was there for a reason and that this is a life worth living.”

No shots were fired that day thanks to fate and Lowe’s quick action.

The coach, who was a former team captain and wide receiver at the University of Oregon, has earned widespread praise for his bravery and compassion towards the student.

The day after the incident he tweeted more about what happened, saying, “When confronted with the test the universe presented me with, I didn’t see any other choice but to act. Thank God, I passed. I’ve spent the last 24 hours being more appreciative of my family and realizing we have

Sentencing  

The student pleaded guilty to one count of unlawful possession of a firearm in a public building and one count of unlawful possession of a loaded firearm in public on Oct. 10.

He was ordered to serve 36 months of probation. As part of a plea deal with prosecutors, he will also receive mental health and substance abuse treatment. 

Source: KOIN – Multnomah County DA’s Office

“He is deeply remorseful for the pain that he has caused his family, his friends and the community,” his lawyer told the presiding judge, adding that he “has a lot of people who care about him, despite what he thought back in May.”

See what others are saying: (The Washington Post) (Time) (KOIN

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Woman Who Live-Streamed Her Sister’s Death Arrested Again, Weeks After Early Prison Release

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  • Obdulia Sanchez made national headlines in 2017 when she live-streamed a drunken car crash that resulted in the graphic death of her 14-year-old sister.
  • She was sentenced to six years in prison but was released late last month after serving a little over two years.
  • But just weeks after her release, Sanchez was arrested again after a short police chase and car crash.

Obdulia Sanchez Arrested Again 

The California woman who served time in prison for killing her sister in a drunken car crash on Instagram live was arrested again, just weeks after her early release. 

Obdulia Sanchez, now 20-years-old, was arrested in Stockton on Thursday after a short police pursuit. Local authorities said she refused to stop when officers attempted to pull her over at around 1:30 am. 

Sanchez eventually crashed her vehicle near a highway on-ramp where another male passenger in the car was able to run out. The male suspect managed to escape police, but Sanchez was arrested. She now faces traffic and weapons charges. 

Authorities said she was on parole and driving on a revoked license. Officers also say they found a loaded gun in the car. 

Stockton Police Department

Recent Release and Previous Crimes 

Sanchez was released on parole late last month after she served more than two years in prison for a previous crash.

In July 2017, Sanchez was drunk driving and live streaming on Instagram when she crashed her car, killing her 14-year-old sister Jacqueline Sanchez Estrada. and injuring another passenger. 

The graphic incident made national headlines. On the stream, Sanchez’s hands could be seen leaving the wheel before she swerved and then overcorrected. Her sister, who was not wearing a seatbelt, was thrown from the vehicle.

“I fucking killed my sister, okay? I know I’m going to jail for life, all right?” Sanchez can be heard saying to her sister, who appeared to be already dead. “Ima hold it down. I love you, rest in peace, sweetie.”

Later reports explained that Sanchez had tested positive for alcohol and cocaine. Sanchez was heavily criticized online for continuing to stream after the crash, showing her sister’s dead body. 

In a public letter written from behind bars, she wrote, “I made that video because I knew I had more than 5,000 followers. It was the only way my sister would get a decent burial. I would never expose my sister like that. I anticipated the public donating money because my family isn’t rich.”

Sanchez was ultimately convicted of gross vehicular manslaughter, DUI and child endangerment. She was sentenced to six years and four months in prison with the possibility of parole after three years.

The state corrections office said Sanchez was approved for early release after earning credit for good behavior, for attending rehabilitation programs, and for time served in jail before she was sentenced. 

See what others are saying: (Sacramento Bee) (NBC News) (The Washington Post) (The Los Angeles Times

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