Too many Deaths, Too many Overdoses

IntroductionI.

Purdue Pharma L.P. (“Purdue Pharma”) and its subsidiaries that are debtors in possession in theabove-captioned chapter 11 cases (collectively, “Debtors” or “Purdue”)2are pharmaceutical companies that manufacture, sell, or distribute, among other products, extended-release, long-acting, abuse-deterrent opioid pain medications. OxyContin®Extended-Release Tablets CII (“OxyContin”), Purdue Pharma’s most prominent pain medication, has been the target of over 2,600 civil actions pendingin various state and federal courtsand other foraacross the United States and its territories (“Pending Actions”). These Pending Actions name as defendants Purdue Pharma and certain ofthe other Debtors(“Defendant Debtors”), among other parties,and generally allege that the Defendant Debtors falsely and deceptivelymarketed OxyContin and opioid pain medications,and are liablefor the national opioid crisis.Unlike most debtors, the Debtors have no funded debt and no material past due trade obligations.Nordo theyhave any judgment creditors.3Nonetheless, the onslaught of lawsuits has proved unmanageable and poses a grave threat to the Debtors’ continued viability. Indeed, although the Debtors have contested–and continue to contest–their liability in the Pending Actions, continued litigation of thousands of Pending Actions to judgment and through appeals in the civil tort system will benefit no one; it will resultonlyin the financial and operational destruction of the Debtorsand the immense value they could otherwise provide,and the squanderingof hundreds of millions of dollars onlawyers’ and professionals’ fees.Purdue Pharma, the Debtors’ main operating entity, is projected to spend approximately $263million on 2legalandrelatedprofessionalcosts in 2019, the vast bulk of which is related to the litigations and government investigations,and the financial pressure resulting therefrom.Indeed,by even the narrowest measure, Purdue Pharma has spent $63 million in the first half of thisyear on costs and fees related to litigating the Pending Actions in court,and is projected to spend $121million by year end –a rate of over $2 million per week. Moreover, “Copycat” complaints are being filed against the Defendant Debtors by the day, further exacerbating an already untenable situation. Read more https://www.docketbird.com/court-documents/Purdue-Pharma-L-P/Statement-Informational-Brief-filed-by-Eli-J-Vonnegut-on-behalf-of-Purdue-Pharma-L-P/nysb-7:2019-bk-23649-00017