600,000+ plaintiffs to vote on Purdue Pharma’s restructuring plan

A New York federal bankruptcy judge said May 26 that Purdue Pharma's proposal to restructure itself as a nonprofit will be voted on by more than 600,000 plaintiffs suing the Oxycontin maker for its role in the opioid epidemic, according to The New York Times.

In October, Purdue Pharma agreed to shut down its company, pay roughly $8.3 billion and plead guilty to three federal criminal charges for its role in creating and exacerbating the nation's opioid epidemic. A condition of the resolution is that the company would emerge from bankruptcy as a public benefit company.

The Sackler family, which founded and owns Purdue Pharma, agreed to relinquish ownership of the company and contribute $4.5 billion to the settlement, which will be paid over nine or 10 years and will mostly go toward a national opioid abatement program. 

Purdue Pharma is expected to mail out packets explaining the restructuring plan to about 614,000 plaintiffs during the first week in June, with voting finishing by July 14. The final decision is up to Judge Robert Drain, and a final confirmation hearing is scheduled for Aug. 9, according to the Times.

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