A federal court on Tuesday ruled that a settlement between
Purdue Pharma, its billionaire owners, state and local governments,
and thousands of Americans can proceed. That is the news that came
out of the 2nd U.S. Circuit Court of Appeals in New York yesterday.
But, when you dig a little deeper, you find a story that epitomizes
American capitalism.
If you are unfamiliar with the name, Purdue Pharma is a company
that made many things. First, it made OxyContin, the drug at the
root of the opioid crisis that has killed tens of thousands of
Americans. Then it made regulators, doctors, and patients believe
that OxyContin was safe to use even though the company knew it
wasnt. Then it made the crisis it created much worse by
relentlessly pushing doctors to prescribe the drug. In the process,
it made its owners, the Sackler family, billions of dollars. And,
most importantly, it made countless people suffer in pursuit of
profits.
Finally, after thousands had died and local communities and
states had spent billions of dollars on dealing with the effects of
the opioid crisis, everybody sued Purdue Pharma and the
Sacklers.
Ultimately, many of these lawsuits were combined, the company
declared bankruptcy, its billionaire owners did not, and a
settlement was reached. Under the agreement, the company would be
reformed and its profits would go toward fighting the opioid
epidemic it triggered, the Sacklers would kick in a few billion
dollars and keep a few billion more in exchange for escaping any
other financial accountability, and, finally, the victims and their
families, as well as the communities who had footed the bill to pay
for the crisis, would get some money.
In 2021, a judge in New York put that agreement on hold. She
ruled that the bankruptcy court judges who approved that deal did
not have the authority to do so because the settlement offered
bankruptcy protections for the Sacklers, even though they had not
filed for bankruptcy.
It is this decision that was overturned yesterday.
So, what does it all mean and why is it a perfect example of US
capitalism?
Because the Sacklers are not only getting away with killing so
many Americans but also with billions of dollars.
None of them is going to jail!
And its not as though their company made a product that was
later found to be harmful and immediately pulled from the market.
Purdue Pharma aggressively marketed it once it was clear to its
owners (but not yet regulators) how addictive it was.
Then, when it became clear that Purdue Pharma would be sued, the
Sacklers began pulling billions out of the company and stashed it
offshore.
The $5.5 billion to $6 billion that family members will have to
contribute over time, no less is only about half of the money the
court estimates the Sacklers made off the suffering of countless
Americans. And there is no telling how much cash they actually
managed to squirrel away.
How is....