Latest news with #BankruptcyCourt
Business Wire
20-06-2025
- Business
- Business Wire
Purdue Pharma L.P. Receives Court Approval of Disclosure Statement Filed in Connection with its Plan of Reorganization
STAMFORD, Conn.--(BUSINESS WIRE)--Purdue Pharma L.P. ('Purdue') today announced that the United States Bankruptcy Court for the Southern District of New York (the 'Bankruptcy Court') approved the Company's disclosure statement for its Chapter 11 Plan of Reorganization. The disclosure statement provides creditors with detailed information on the terms of the Plan and will accompany the ballots that will be sent to the more than 600,000 claimants eligible to vote. The court has set a September 30 voting deadline and a November confirmation hearing. 'Following the 2024 Supreme Court ruling, we doubled down on our commitment to work with our creditors to design a new Plan that delivers unprecedented value to those affected by the opioid crisis. Today's disclosure statement approval is a major milestone in that effort,' said Purdue Board Chairman Steve Miller. 'We and our creditors have worked tirelessly in mediation to build consensus and negotiate a settlement that will increase the total value provided to victims and communities, put billions of dollars to work on day one, and serve the public good. We sincerely thank our stakeholders for their dedication and collaboration, and we look forward to having the plan confirmed and consummated as quickly as possible.' Purdue's Plan of Reorganization includes the following elements: Assuming full creditor participation, the Sacklers will make settlement payments of approximately $6.5 billion in installments over the next 15 years, subject to certain reserves. They will pay $1.5 billion on the day the Plan becomes effective. Purdue will contribute 100% of its assets, with an expected $900 million in cash available for distribution on the day of emergence. Notably, the Plan is the only opioid settlement to date that meaningfully compensates individual victims. Assuming full participation, individual victims will receive more than $850 million. In addition to this cash value, the Plan creates a new company with a public minded mission. The new company will provide millions of doses of lifesaving opioid use disorder treatment and overdose reversal medicines at no profit. The Sacklers, who exited the Board of Purdue by the end of 2018 and have had no involvement in Purdue since that time, will have no role whatsoever in the new company. Purdue Pharma L.P. will be liquidated following emergence. The Plan also provides a historic level of transparency. It creates a document repository that will make available to the public millions of documents, including privileged documents, related to Purdue's historical sales and marketing practices. The Plan does not contain third-party releases and fully complies with the Supreme Court's June 2024 decision in Harrington. The disclosure statement approved today provides the full details about the material aspects of the plan. The Plan is subject to confirmation by the Bankruptcy Court. This release is not intended as a solicitation of a vote on the Plan. Purdue Pharma and its subsidiaries develop, manufacture and market medications to meet the evolving needs of healthcare professionals, patients, and caregivers. Purdue and its subsidiaries focus on balancing innovative science with clinically effective, compassionate care. The Company's goals are to serve patients who rely on its medicines, pursue public health initiatives intended to help abate the opioid crisis, advance its pipeline of branded and generic medications, and introduce medicines that will help save and improve lives.
Yahoo
20-06-2025
- Business
- Yahoo
Purdue Pharma's $7B opioid settlement plan could get votes from victims and cities
OxyContin maker Purdue Pharma 's $7 billion-plus plan to settle thousands of lawsuits over the toll of opioids will go before a judge Friday, potentially setting up votes on whether to accept it for local governments, people who became addicted to the drug and other groups. This month, 49 states announced they have signed on to the the proposal. Only Oklahoma, which has a separate settlement with the company, is not involved. U.S. Bankruptcy Court Judge Sean Lane could decide as soon as Friday whether to advance the nationwide settlement, which was hammered out in negotiations between the company, groups that have sued and representatives of members of the Sackler family who own the company. If Lane moves the plan forward as it's been presented, government entities, emergency room doctors, insurers, families of children born into withdrawal from the powerful prescription painkiller, individual victims and their families and others would have until Sept. 30 to vote on whether to accept the deal. The settlement is a way to avoid trials with claims from states alone that total more than $2 trillion in damages. If approved, the settlement would be among the largest in a wave of lawsuits over the past decade as governments and others sought to hold drugmakers, wholesalers and pharmacies accountable for the opioid epidemic that started rising in the years after OxyContin hit the market in 1996. The other settlements together are worth about $50 billion, and most of the money is to be used to combat the crisis. In the early 2000s, most opioid deaths were linked to prescription drugs, including OxyContin. Since then, heroin and then illicitly produced fentanyl became the biggest killers. In some years, the class of drugs was linked to more than 80,000 deaths, but that number dropped sharply last year. Last year, the U.S. Supreme Court rejected a version of Purdue's proposed settlement. The court found it was improper to protect members of the Sackler family from lawsuits over opioids, even though they themselves were not filing for bankruptcy protection. In the new version, groups that don't opt in to the settlement would still have the right to sue members of the wealthy family whose name once adorned museum galleries around the world and programs at several prestigious U.S. universities. Under the plan, the Sackler family members would give up ownership of Purdue. They resigned from the company's board and stopped receiving distributions from its funds before the company's initial bankruptcy filing in 2019. The remaining entity would get a new name and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation's addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims. That makes it different from the other major settlements. The payments would not begin until after a hearing, likely in November, during which Judge Lane would be asked to approve the entire plan if enough of the affected parties agree. Geoff Mulvihill, The Associated Press
The Independent
20-06-2025
- Business
- The Independent
Purdue Pharma's $7B opioid settlement plan could get votes from victims and cities
OxyContin maker Purdue Pharma 's $7 billion-plus plan to settle thousands of lawsuits over the toll of opioids will go before a judge Friday, potentially setting up votes on whether to accept it for local governments, people who became addicted to the drug and other groups. This month, 49 states announced they have signed on to the the proposal. Only Oklahoma, which has a separate settlement with the company, is not involved. U.S. Bankruptcy Court Judge Sean Lane could decide as soon as Friday whether to advance the nationwide settlement, which was hammered out in negotiations between the company, groups that have sued and representatives of members of the Sackler family who own the company. If Lane moves the plan forward as it's been presented, government entities, emergency room doctors, insurers, families of children born into withdrawal from the powerful prescription painkiller, individual victims and their families and others would have until Sept. 30 to vote on whether to accept the deal. The settlement is a way to avoid trials with claims from states alone that total more than $2 trillion in damages. If approved, the settlement would be among the largest in a wave of lawsuits over the past decade as governments and others sought to hold drugmakers, wholesalers and pharmacies accountable for the opioid epidemic that started rising in the years after OxyContin hit the market in 1996. The other settlements together are worth about $50 billion, and most of the money is to be used to combat the crisis. In the early 2000s, most opioid deaths were linked to prescription drugs, including OxyContin. Since then, heroin and then illicitly produced fentanyl became the biggest killers. In some years, the class of drugs was linked to more than 80,000 deaths, but that number dropped sharply last year. Last year, the U.S. Supreme Court rejected a version of Purdue's proposed settlement. The court found it was improper to protect members of the Sackler family from lawsuits over opioids, even though they themselves were not filing for bankruptcy protection. In the new version, groups that don't opt in to the settlement would still have the right to sue members of the wealthy family whose name once adorned museum galleries around the world and programs at several prestigious U.S. universities. Under the plan, the Sackler family members would give up ownership of Purdue. They resigned from the company's board and stopped receiving distributions from its funds before the company's initial bankruptcy filing in 2019. The remaining entity would get a new name and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation's addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims. That makes it different from the other major settlements. The payments would not begin until after a hearing, likely in November, during which Judge Lane would be asked to approve the entire plan if enough of the affected parties agree.
Associated Press
20-06-2025
- Business
- Associated Press
Purdue Pharma's $7B opioid settlement plan could get votes from victims and cities
OxyContin maker Purdue Pharma 's $7 billion-plus plan to settle thousands of lawsuits over the toll of opioids will go before a judge Friday, potentially setting up votes on whether to accept it for local governments, people who became addicted to the drug and other groups. This month, 49 states announced they have signed on to the the proposal. Only Oklahoma, which has a separate settlement with the company, is not involved. U.S. Bankruptcy Court Judge Sean Lane could decide as soon as Friday whether to advance the nationwide settlement, which was hammered out in negotiations between the company, groups that have sued and representatives of members of the Sackler family who own the company. If Lane moves the plan forward as it's been presented, government entities, emergency room doctors, insurers, families of children born into withdrawal from the powerful prescription painkiller, individual victims and their families and others would have until Sept. 30 to vote on whether to accept the deal. The settlement is a way to avoid trials with claims from states alone that total more than $2 trillion in damages. If approved, the settlement would be among the largest in a wave of lawsuits over the past decade as governments and others sought to hold drugmakers, wholesalers and pharmacies accountable for the opioid epidemic that started rising in the years after OxyContin hit the market in 1996. The other settlements together are worth about $50 billion, and most of the money is to be used to combat the crisis. In the early 2000s, most opioid deaths were linked to prescription drugs, including OxyContin. Since then, heroin and then illicitly produced fentanyl became the biggest killers. In some years, the class of drugs was linked to more than 80,000 deaths, but that number dropped sharply last year. Last year, the U.S. Supreme Court rejected a version of Purdue's proposed settlement. The court found it was improper to protect members of the Sackler family from lawsuits over opioids, even though they themselves were not filing for bankruptcy protection. In the new version, groups that don't opt in to the settlement would still have the right to sue members of the wealthy family whose name once adorned museum galleries around the world and programs at several prestigious U.S. universities. Under the plan, the Sackler family members would give up ownership of Purdue. They resigned from the company's board and stopped receiving distributions from its funds before the company's initial bankruptcy filing in 2019. The remaining entity would get a new name and its profits would be dedicated to battling the epidemic. Most of the money would go to state and local governments to address the nation's addiction and overdose crisis, but potentially more than $850 million would go directly to individual victims. That makes it different from the other major settlements. The payments would not begin until after a hearing, likely in November, during which Judge Lane would be asked to approve the entire plan if enough of the affected parties agree.
CNBC
09-06-2025
- Business
- CNBC
Sunnova files for bankruptcy on residential solar woes
Sunnova Energy said on Sunday it had filed for Chapter 11 bankruptcy protection in the United States, as the residential solar panel installer buckled under the pressure of mounting debt and weakening demand. Shares were down 36.4% at 14 cents in premarket trading. Sunnova filed for protection in the Bankruptcy Court for the Southern District of Texas after warning in March that it might not be able to continue as a going concern. The company listed its estimated assets and liabilities in the range of $10 billion to $50 billion and has a total debt of $10.67 billion as of December 31, according to a court filing. Sunnova said last week it would lay off about 55% of its workforce, or 718 employees, in a bid to cut spending. Earlier this month, its unit, Sunnova TEP Developer, had also filed for Chapter 11 bankruptcy protection. The company's bankruptcy filing comes at a time when the U.S. residential solar energy industry is under immense pressure from higher interest rates; a reduction in incentives in the top market, California; and fears of subsidy rollbacks for clean energy. President Donald Trump's administration, which is pushing to maximize oil and gas production, canceled a partial loan guarantee of $2.92 billion last month that was awarded to Sunnova by the Biden administration. Last year, peer SunPower, once a pioneer of the U.S. residential solar market, also collapsed following a subpoena from the U.S. Securities and Exchange Commission about its accounting practices and the departure of its CEO. Companies that put solar panels on U.S. homes said last month a Republican budget bill that has advanced in Congress could deal a massive blow to the industry by eliminating a generous subsidy for homeowners that had buttressed the industry's growth.
