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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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Katie Couric Says She Edited Ruth Bader Ginsburg Quote About Athletes Kneeling During National Anthem

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Couric said she omitted part of a 2016 interview in order to “protect” the justice.


Kate Couric Edited Quote From Justice Ginsburg

In her upcoming book, journalist Katie Couric admitted to editing a quote from Supreme Court Justice Ruth Bader Ginsberg in 2016 in order to “protect” Ginsberg from potential criticism. 

Couric interviewed the late justice for an article in Yahoo News. During their discussion, she asked Ginsburg about her thoughts on athletes like Colin Kaepernick kneeling for the national anthem to protest racial inequality.

“I think it’s really dumb of them,” Ginsburg is quoted saying in the piece. “Would I arrest them for doing it? No. I think it’s dumb and disrespectful. I would have the same answer if you asked me about flag burning. I think it’s a terrible thing to do, but I wouldn’t lock a person up for doing it. I would point out how ridiculous it seems to me to do such an act.”

According to The Daily Mail and The New York Post, which obtained advance copies of Couric’s book “Going There,” there was more to Ginsburg’s response. Couric wrote that she omitted a portion where Ginsburg said the form of protest showed a “contempt for a government that has made it possible for their parents and grandparents to live a decent life…Which they probably could not have lived in the places they came from.

Couric Says She Lost Sleep Making Choice

“As they became older they realize that this was youthful folly,” Ginsberg reportedly continued. “And that’s why education is important.

According to The Daily Mail, Couric wrote that the Supreme Court’s head of public affairs sent an email asking to remove comments about kneeling because Ginsburg had misspoken. Couric reportedly added that she felt a need to “protect” the justice, thinking she may not have understood the question. Couric reached out to her friend, New York Times reporter David Brooks, regarding the matter and he allegedly likewise believed she may have been confused by the subject. 

Couric also wrote that she was a “big RBG fan” and felt her comments were “unworthy of a crusader for equality.” Because she knew the remarks could land Ginsburg in hot water, she said she “lost a lot of sleep” and felt “conflicted” about whether or not to edit them out. 

Couric was trending on Twitter Wednesday and Thursday as people questioned the ethics behind her choice to ultimately cut part of the quote. Some thought the move showed a lack of journalistic integrity while others thought revealing the story now harmed Ginsburg’s legacy.

See what others are saying: (New York Post) (The Daily Mail) (Insider)

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Biden Administration Orders ICE To Halt Workplace Raids

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The Department of Homeland Security will now focus on targeting employers who exploit undocumented workers, instead of carrying out raids that dissuade those workers from reporting labor violations.


DHS Reverses Worksite Raid Policy

The Biden administration announced Tuesday that it was ordering Immigration and Customs Enforcement (ICE) to stop workplace raids.

The move marks a reversal from Trump administration policies that have been strongly criticized by immigration activists who argue the efforts created fear in immigrant communities and dissuaded them from reporting labor violations or exploitative employment practices.

In addition to stopping the raids, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas said in a memo that the administration will refocus enforcement efforts to instead target “employers who exploit unauthorized workers, conduct illegal activities or impose unsafe working conditions.” 

Mayorkas added that the immigration agencies housed in DHS will have the next 60 days to identify harmful existing policies and come up with new ones that provide better deportation protections for workers who report their employers.

In the Tuesday memo, the secretary argued that shift of focus will “reduce the demand for illegal employment by delivering more severe consequences to exploitative employers” and “increase the willingness of workers to report violations of law by exploitative employers and cooperate in employment and labor standards investigation.”

Labor Market Implications

The new policy comes at a time when the U.S. is experiencing a critical labor shortage, including in many sectors that rely on immigrant labor.

Some companies that use undocumented workers pay them wages that are far below the market rate, which is not only exploitative but also undercuts competitors.

According to Mayorkas, the pivot to employer-based enforcement will help protect American businesses.

“By exploiting undocumented workers and paying them substandard wages, the unscrupulous employers create an unfair labor market,” he said in the memo. “They also unfairly drive down their costs and disadvantage their business competitors who abide by the law.”

It is currently unclear how effective the new efforts will be, but historical precedent does not paint an optimistic picture.

The Biden administration’s efforts closely mirror a similar move by the Obama administration, which attempted to reverse workplace raids authorized under President George W. Bush by targetting those who employ undocumented workers rather than the workers themselves.

That effort, however, still led to thousands of undocumented workers being fired.

See what others are saying: (The Washington Post) (The New York Times) (ABC News)

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Mom Charged for Hosting Secret Teen Parties, Pressuring Kids To Drink and Engage in Sex Acts

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Investigators said some of the sex acts between teens were non-consensual and at times took place while the mother stood by laughing.


Mother Hit With Dozens of Charges

A California mother is facing 39 criminal charges after hosting a series of illegal parties for her teenage son and his mostly 14- and 15-year-old friends that regularly led to dangerous accidents and sexual assaults.

The mother, 47-year-old Shannon O’Connor, also known as Shannon Bruga, is currently awaiting extradition to Santa Clara County. According to The Mercury News, she was arrested Saturday in Ada County, Idaho, where she has a home in addition to her property in Los Gatos that is currently on the market.

Her criminal charges include 12 felony counts and 10 misdemeanor counts of child endangerment, one count of misdemeanor sexual battery, three counts of misdemeanor child molestation, and 13 misdemeanor counts of providing alcohol to minors.

“It took a lot of brave children to come forward and to untangle this deeply disturbing case,” Santa Clara County District Attorney Jeff Rosen said in a press release regarding the case. “As a parent, I’m shocked. As the DA, I’m determined to hold those adults who endanger children fully accountable to the law and our community.”

What Happened During the Parties?

Investigators claim O’Connor organized the functions, attended by as many as 20 teens, via text message and Snapchat. She would then allegedly supply the teens with alcohol and push them to binge drink, often to the point of illness or unconsciousness.

The harm that resulted from their intoxication included one teen breaking a finger and another almost drowning in a hot tub, among other serious situations.

In another instance, O’Connor let an unlicensed drunk teen drive her car. Her son and another one of his friends then hung off the back while it was moving, which caused the friend to fall, hit his head, and become unconscious for 30 seconds. He was later diagnosed with a concussion after spending the night vomiting.

O’Connor is additionally accused of manipulating and encouraging drunk teens to participate in sex acts with one another, which were sometimes non-consensual or carried out while she watched. In some cases, she allegedly laughed while the sexual acts happened or when assault victims asked her why she didn’t step in to help.

Investigators added that O’Connor required teens who attended her parties to keep them a secret. She’s even accused of helping them sneak out of their homes so she could drive them to her events. Authorities said she was found to have bullied at least one teen who she suspected of breaking the secret.

“Everyone should feel relieved this woman’s not on the street,” the parents of one assault victim told The Mercury News. “She was grooming these kids, setting them up for sexual acts, and she’s a mother and doing this to her own child. … I’ve been racking my brain trying to think what was in it for her.

See what others are saying: (The Mercury News) (ABC 7) (CBS San Francisco)

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