CHARLESTON -- West Virginia Attorney General Patrick Morrisey says he wants to do what’s best for the state, and he doesn’t know if that means signing off on Purdue Pharma’s $7 billion bankruptcy plan.
“No amount of money can wipe away the devastation caused by opioids in West Virginia,” Morrisey said. “Through this bankruptcy process, I will remain focused upon securing the best deal for West Virginia, one that puts the Mountain State first and recognizes the significant amount of devastation caused here as compared to other areas.
“I still have concerns with the current proposal, but will continue working to improve it and hold Purdue and responsible individuals accountable.”
Morrisey
The $7 billion proposal represents a combining of company assets and a guaranteed $4.275 billion from the Sackler family, a contribution of nearly 50 percent more than the family’s offer from two years ago. The bankruptcy plan also removes the Sackler family’s control and ownership of Purdue Pharma, effectively barring them from any future involvement in opioid sales in the United States.
The bankruptcy plan says assets from Purdue Pharma will be transferred to a new company that will emerge from the bankruptcy with an independent board of directors and oversight by a court-appointed monitor.
A federal bankruptcy judge has approved the proposal. The settlement money would go to state, local and tribal governments. Morrisey says he isn’t sure that signing the agreement is the best move for the state.
“We have to ensure we are maximizing what is coming back into the state to address the harms that were caused by so many people,” Morrisey said. “We are working hard to make sure West Virginia is not just going to get some settlement based on population.
“The settlement has to reflect the severity of the harm that was created in our state.”
In May 2019, Morrisey sued Purdue Pharma and former chief executive Richard Sackler alleging the company created a false narrative to convince prescribers that opioids are not addictive and that its opioid products were safer than they actually were.
The complaint says Purdue Pharma proliferated a deceptive marketing strategy with reckless disregard for compliance enforcement. It also alleges company sales representatives routinely claimed OxyContin had no dose ceiling, despite assertions by federal regulators that OxyContin’s dose ceiling was evident by adverse reactions.
The lawsuit is West Virginia’s second against Purdue Pharma. The first, filed in 2001, resulted in a $10 million settlement in 2004. But that case involved an earlier version of the opioid than the reformulated, so-called tamper-resistant OxyContin that debuted in 2010.
