Narrative of Resolution:
title
Authorize County Manager to vote in favor of Chapter 11 Plan of Purdue Pharma L.P.
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RESOLUTION INTRODUCED BY THE EXECUTIVE COMMITTEE TO ALLOW THE COUNTY MANAGER TO VOTE IN FAVOR OF THE CHAPTER 11 PLAN OF REORGANIZATION OF PURDUE PHARMA L.P. AND ITS AFFILIATED DEBTORS (“PURDUE”), AND TO PARTICIPATE IN THE SETTLEMENT OF PURDUE’S ESTATE IN BANKRUPTCY AND THE DIRECT SETTLEMENT OF LITIGATION AGAINST PURDUE
WHEREAS, the opioid crises has devastated countless families and communities in Sullivan County; and
WHEREAS, having risen to the status of an epidemic the County of Sullivan wishes to take steps to address this crisis in a meaningful way; and
WHEREAS, many of the opioids placed into the chain of commerce in Sullivan County have been produced by Purdue Pharma (“Purdue”) and its affiliates; and
WHEREAS, the County of Sullivan has joined with many other municipalities in prosecuting litigation against several of the manufacturers and distributors of opioids, including, without limitation, Purdue; and
WHEREAS, in 2019, while the litigation against Purdue was pending, Purdue filed for reorganization pursuant to Chapter 11 of the United States Bankruptcy Code; and
WHEREAS, the County of Sullivan, along with many other municipalities, is a claimant against Purdue’s estate in bankruptcy (the “Estate”); and
WHEREAS, the parties to the underlying litigation against Purdue have been engaged in settlement negotiations; and
WHEREAS, the proposed settlement of the underlying litigation will be implemented in connection with Purdue’s bankruptcy proceeding, and consists of, among other things, a settlement of direct claims against the Sackler family held by states, local governments, and other creditors (“Direct Settlement”) and a settlement of the Estate (“Estate Settlement”); and
WHEREAS, the deadline for submissions to participate in the Direct Settlement and to approve Purdue’s bankruptcy plan, which will provide distributions from the Estate Settlement, is September 30, 2025; and
WHEREAS, the Direct Settlement and the Estate Settlement will ensure payments to Sullivan County bringing much needed funding to our community to assist in abating the opioid crisis.
NOW THEREFORE BE IT RESOLVED, that effective September 18, 2025 the County Manager is hereby authorized to vote in favor of Purdue’s bankruptcy plan on behalf of the County of Sullivan; and it is further
RESOLVED, that the County Manager is hereby authorized to participate in the Direct Settlement and the Estate Settlement on behalf of the County of Sullivan.