One Step Closer

On Tuesday, the U.S. Court of Appeals for the Second Circuit court approved a provision of Purdue Pharma’s settlement, finding that the plan’s release of civil liability for the members of the Sackler family is valid.  

Now, the matter will either be appealed by the U.S. Bankruptcy Trustee to the U.S. Supreme Court or be remanded to the district court if there is no appeal.

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What this means
If the case is remanded, the legal process can finally begin moving toward compensating opioid victims and their families.

Once the bankruptcy plan is approved, Purdue will fund the initial portion of the $6B dollars that it is required to pay.  This lawsuit is one of only two settlements thus far that includes payments to individuals, making it all that much more important to the victims.

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What may happen next?
While this news is a step forward, there are still several hurdles to be cleared before victims can receive their settlement payments. Here is what to watch for if there is no appeal to the Supreme Court:

• ‍Bankruptcy Plan: Needs to be approved by the Bankruptcy Court
• ‍Claims Process: A claims process is established to allow eligible individuals to file claims to receive compensation from the settlement fund.
• ‍Claims Evaluation: After the claim submission period ends, an evaluation process takes place to review and assess the validity of each claim.
• ‍Allocation and Distribution: Once the claims are evaluated, the next step is to determine how the settlement funds will be allocated among the eligible claimants.
• ‍Distribution Plan Approval: The proposed distribution plan is presented to the court for review and approval.
• ‍Distribution of Funds: After the court approves the distribution plan, the funds can be distributed to the eligible claimants.

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Our Perspective
We hope that the U.S. Trustee does not appeal the ruling and that Purdue can finally start moving toward distribution.  
This is a victory for the individuals and organizations involved in the opioid lawsuits. While there are still hurdles to clear, we believe this news brings plaintiffs one step closer to receiving the funds that communities and individuals so desperately need.