Many Opioid Victims Will Be Shut Out of Purdue's $7.4B Bankruptcy Settlement
7 hours ago
- #Opioid Crisis
- #Corporate Accountability
- #Bankruptcy Settlement
- Mary Jannotta, a former deli worker, became dependent on OxyContin after a botched surgery and lost her grandson to overdose after he stole her pills.
- Purdue Pharma's bankruptcy settlement, revised after Supreme Court rejection, excludes tens of thousands of claimants by imposing stricter evidence requirements and removing affidavit options.
- The new settlement plan reduces payouts for fatal overdoses from $48,000 to as low as $8,000 and requires prescription records, which many victims lack due to time lapses.
- Victims faced confusing deadlines and procedural changes negotiated privately, with many unaware of tightened eligibility until contacted by journalists.
- Law firms representing victims may take up to 40% of awards, and administrative fees could consume 15-25% of settlement funds, reducing compensation further.
- Despite some victims appealing rejections, the settlement process has been criticized for shielding powerful entities and failing to adequately acknowledge harm.