Purdue Pharma Considers Bankruptcy, Raimondo Refuses to Answer Questions About Ties to Company
GoLocalProv News Team
Purdue Pharma Considers Bankruptcy, Raimondo Refuses to Answer Questions About Ties to Company
“The potential move shows how Purdue and its wealthy owners, the Sackler family, are under pressure to respond to mounting litigation accusing the company of misleading doctors and patients about risks associated with prolonged use of its prescription opioids,” reported Reuters.
The Sacklers rank as the 19th richest family in the United States according to Business Insider.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTJonathan Sackler, who has been a board member of Purdue Pharma, and his wife Mary Corson, are significant donors to Governor Gina Raimondo. Raimondo, who has said in the past she supports the Rhode Island lawsuit against Purdue Pharma, has refused to donate or return the donations from the Sacklers.
In contrast, Lt Governor Dan McKee donated campaign donations from Sackler and Corson to Rhode Island agencies that treat substance abuse.
No Answers to Donation Questions
Neither Raimondo’s press spokesman Josh Block would respond to questions nor Kate Ramstad of the Raimondo campaign. After winning a second term in office in November, Raimondo’s campaign sits on more than $305,000. Raimondo is term-limited from running again for Governor in Rhode Island.
According to the Wall Street Journal and lawsuits filed by a number of states, “Sackler family members still own the company through trusts and for years controlled its board of directors and held senior management positions.”
The lawsuit filed in Massachusetts and in New York names Jonathan Sackler individually in the lawsuit.
On Friday, Purdue Pharma filed to have the Massachusetts case dismissed.
Purdue Pharma’s subsidiary Rhodes Technology is located in Coventry, Rhode Island — and manufacturers and markets the highly addictive OxyContin drug. Rhodes' facility in Rhode Island employs hundreds.
What does bankruptcy mean?
“A bankruptcy filing would immediately halt the lawsuits and provide an avenue to settle the claims on a global basis overseen by the bankruptcy court. The process could provide a quicker and more orderly resolution of the lawsuits than through the state and federal courts where they were filed. But the exact nature of how the cases would be dispensed with in bankruptcy is unclear,” reports the Wall Street Journal.
This story was first published at 3/5/19 11:59 AM. It was updated on 3/6/19 at 5:05 AM