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

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2 years ago

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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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Soldier Charged With Assault After Shoving Black Man in Viral Video

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10 hours ago

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April 15, 2021

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  • Authorities charged Army soldier Jonathan Pentland with third-degree assault and battery on Wednesday after a viral video showed him shoving a Black man while yelling at him to leave a South Carolina neighborhood.
  • Many people, including dozens who protested outside Pentland’s home this week, condemned the confrontation as another instance of someone being attacked for “walking while Black.”
  • Pentland and others claimed the unidentified man was picking a fight with neighbors, which the man denied, but police said nothing that may have happened earlier justified Pentland’s actions.
  • If convicted, Pentland faces a $500 fine and 30 days in jail.

Viral Video

A U.S. soldier was charged with assault on Wednesday after a video that circulated online showed him yelling at and shoving a Black man in a South Carolina neighborhood.

Footage of the April 8 incident was posted to social media Monday. It shows the Army soldier, Jonathan Pentland, confronting the unidentified man and telling him to leave the neighborhood. 

The other man explains that he’s just walking through the area and doing nothing wrong, but Pentland becomes increasingly aggressive. “You better walk away,” he shouts at the man after shoving him.

“You either walk away, or I’m gonna carry your ass out of here,” he continues before adding, “You’re in the wrong neighborhood motherf*ker. Get out!”

The man then tries to tell Pentland that he lives in the neighborhood, and Pentland then asks for his address, which he does not give.

The confrontation continues with Pentland cursing and getting in the man’s face. As he does so, the man says that Pentland smells drunk. 

It’s unclear what exactly led up to the confrontation, but in the video, a woman off-camera says the man “picked a fight with some random young lady that’s one of our neighbors.”

“I don’t even know who she is. Nobody picked a fight when someone ran up on me,” the man replies. Another woman off-screen then encourages the man to leave with her, saying, “What’s your name? Come on. You don’t want no trouble.”

Video Triggers Protests Outside Pentland’s Home

After this video spread online, many social media users condemned it as another instance of someone being attacked for “walking while Black.”

In fact, protesters even began demonstrating outside of Penland’s home. Those protests started off peaceful, but deputies were then called after 8 p.m. because unknown individuals vandalized the house. That forced police to shut down access to the area and remove Pentland’s family to another location.

As far as the viral video, deputies were told that the man approached “several neighbors in a threatening manner” and that someone had asked Pentland to “intervene.”

Police did confirm that there are two reports of alleged assault against the unnamed man Pentland shoved that are being investigated. However, they also added that the man has “an underlying medical condition that may explain the behavior exhibited in the alleged incidents.”

Pentland Charged

Either way, police said whatever happened earlier did not justify Pentland’s actions. He was ultimately arrested Wednesday morning and was charged with third-degree assault and battery. He faces a $500 fine and 30 days in jail if convicted.

“We’re not going to let people be bullies in our community,” Richland County Sheriff Leon Lott said at a news conference Wednesday. “And if you are, you’re going to answer for it, and that’s what we’ve done in this case.”

On top of that, the Justice Department reportedly was investigating. Pentland’s Commanding General even issued a statement condemning his behavior, adding that Pentland “brought disrespect to @fortjackson our Army and the trust with the public we serve.”

See what others are saying: (The Washington Post) (ABC News) (Huffpost)

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Texas Students Created Snapchat Group To ‘Slave Trade’ Black Classmates

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1 day ago

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April 14, 2021

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  • Freshmen at a Texas high school set up a Snapchat group to pretend to sell their Black classmates. 
  • A screenshot showed the group name being changed from “Slave Trade” with emojis of a Black man, a gun, and a white police officer to “[racial slur] Farm” and then “[racial slur] Auction.”
  • That image also shows a person saying they would spend $100 on a peer while a second student said they would spend $1 on another, adding “would be better if his hair wasn’t so bad.”
  • The school faced backlash for initially describing it as “an incident of cyberbullying and harassment,” without acknowledging the racism. The district later issued a stronger condemnation and said the students were disciplined but did not list specific consequences.

Racist Snapchat Group

Aledo high school students at Daniel Ninth Grade Campus in Northern Texas are making headlines for setting up a Snapchat group to pretend to sell their Black classmates. 

A screenshot reviewed by several local news outlets showed the group name being changed from “Slave Trade” with emojis of a Black man, a gun, and a white police officer to “[racial slur] Farm” and then “[racial slur] Auction.”

That image also shows a person saying they would spend $100 on a peer. A second student said they would spend $1 on another, adding “would be better if his hair wasn’t so bad.”

Screenshot of group chat message via KXAS

At least one student who was mentioned as being “sold” in the chats was later sent screenshots of the conversations.

According to a report from the Star-Telegram reported last week, when the issue was brought to Principal Carolyn Ansley, she sent parents an email that didn’t mention the Snapchat group but only cited “an incident of cyberbullying and harassment.”

That caused frustrations because parents felt the issue of racism wasn’t being addressed or acknowledged.

Mark Grubbs, a father of three former students, told KXAS he was sickened by the students’ actions. Grubbs, who is Black, also said he had taken his children out of the district over other racist incidents in the past.

“My son being called out of his name and what not and it got to the point he didn’t mind fighting and that didn’t sit right with me and my wife. My son was never a fighter,” he said.

District Responds

After the incident garnered media attention, the Aledo Independent School District issued a statement.

The district said it learned of the incident more than two weeks ago and started an investigation that involved law enforcement.

“There is no room for racism or hatred in the Aledo ISD, period,” it added. “Using inappropriate, offensive and racially charged language and conduct is completely unacceptable and is prohibited by district policy.”

District officials spoke with the students responsible as well as their parents, saying they “made it clear that statements and conduct that targets a student because of his or her race is not only prohibited but also has a profound impact on the victims.”

The district also said it assigned disciplinary consequences, though it did not explicitly state what those consequences were or state how many students were involved.

See what others are saying: (The Washington Post) (ABC) (Fort Worth Star-Telegram)

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What You Need To Know About the Johnson & Johnson Vaccine Pause

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2 days ago

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April 13, 2021

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  • The CDC and the FDA have issued a joint recommendation to pause distribution of Johnson & Johnson’s COVID-19 vaccine amid reports that six women experienced “extremely rare” blood clots after receiving the single-dose shot.
  • The vast majority of the 6.8 million Americans who were given the Johnson & Johnson vaccine have reported minor to no side effects, and no direct link has been established between the vaccine and blood clots at this time. 
  • The two agencies are expected to release updated guidance in the coming days.
  • Several states and cities are now automatically giving the two-dose Pfizer vaccine to people who were scheduled to receive the Johnson & Johnson vaccine this week. 

CDC and FDA Recommend J&J Vaccine Halt

The Centers for Disease Control and Prevention, as well as the Food and Drug Administration, released a statement Tuesday recommending a pause on the use of Johnson & Johnson’s COVID-19 vaccine.

So far, 6.8 million people in the U.S. have been vaccinated with Johnson & Johnson’s single-dose vaccine, most with zero or only mild side effects.

The updated guidance comes after six women, all between the ages of 18 to 48, experienced what both agencies described as “extremely rare” blood clots six to 13 days after being vaccinated. One of those women has died and another is in critical condition.

Neither the CDC nor the FDA has confirmed that the Johnson & Johnson vaccine is the cause of these blood clots; rather, they said this guidance comes “out of an abundance of caution.”

That’s also in line with Johnson & Johnson itself, which said it’s aware of the reports but added that “no clear causal relationship has been established between these rare events.” As a precaution, Johnson & Johnson has also now delayed the rollout of its vaccine in Europe. 

What Happens From Here?

Principal Deputy Director of the CDC Anne Schuchat said further recommendations will come quickly.

FDA Acting Commissioner Janet Woodcock echoed that statement, saying, “We expect it to be a matter of days for this pause.”

Wednesday, a CDC committee will convene to discuss the cases and assess their potential significance.

When asked if the government was overreacting to just six cases out of nearly 7 million vaccinations (a criticism made by some online), Schuchat said the CDC pulled its recommendation specifically because the type of blood clots seen in these 6 women requires special treatment, so “it was of the utmost importance to us to get the word out.”

In the meantime, both agencies are urging Johnson & Johnson vaccine recipients to contact their doctors if they experience any combination of severe headaches, abdominal pain, leg pain, or shortness of breath. 

What If I Had A J&J Appointment?

Both agencies, as well as other health officials, are still urging unvaccinated people to take the Moderna and Pfizer vaccines when available in their area.

The White House’s COVID-19 response coordinator has said that 28 million doses of those vaccines will be made available this week. Notably, that’s more than enough for the country to continue giving 3 million shots a day. 

If you had an appointment scheduled to get the Johnson & Johnson vaccine, you’re likely not completely out of luck.

For example, while D.C. vaccination sites are canceling all Johnson & Johnson appointments between Tuesday and this Saturday, the health department there has said it’ll send out invitations on Wednesday to reschedule.

Similar situations were reported in Virginia and Maryland, though some vaccination sites in Maryland are still honoring existing appointments by automatically giving people Pfizer instead. That’s also a process that is now being conducted in places like New York State and Memphis.

See what others are saying: (Associated Press) (NBC News) (The Washington Post)

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