Connecticut Attorney General William Tong is rejecting a plan embraced by 15 states, including New York, that involves a $4.5 billion settlement with Stamford’s Purdue Pharma.
Under the plan, the states would agree to drop their opposition to Purdue Pharma”™s proposed bankruptcy organization.
The settlement would require the company to release approximately 33 million documents related to its Oxycontin opioid product line while the Sackler family, owners of Purdue Pharma, would pay out an additional $50 million, along with a $225 million in a civil settlement with the U.S. Department of Justice, over the next nine years.
In turning down the settlement, which was disclosed in a late night court filing on Wednesday night, Tong explained on his social media pages that the plan was “far from justice” and was too lenient on the Sackler family.
“Purdue and the Sacklers have misused this bankruptcy to protect their vast wealth and evade consequences for their callous misconduct,” Tong said. “This deal alarmingly allows the Sacklers to still walk away with their personal wealth intact, and now allows funds already intended for charity to be included this deal.
“We are evaluating all options to continue to fight this bankruptcy plan until all viable options are exhausted,” he added. “We need to take a hard look at our bankruptcy laws and our system of justice that allows the Sacklers to walk away clinging to their jewelry, art and vacation homes while the victims of their depraved schemes continue to suffer and grieve.”
Eight other states and the District of Columbia have also rejected the proposed settlement.
