Sacklers granted lifetime legal immunity in opioid settlement
arstechnica.com
arstechnica.com
This whole thing is just so infuriating. I feel powerless to affect change against an entire system that increasingly feels like it was designed to protect families like the Sacklers.
Sorry for a political rant on HN...
> feels like it was designed to protect families
That's because it is designed to protect them. When a good enough team of lawyers can free you from consequences, it equates to being able to buy off justice.
When the majority of financial instrument controls are designed to limit the financial activity of the layman, who does it benefit? Just yesterday I was fighting with my bank about how much I could spend on a single purchase. It was a startlingly low number. The amount I can actually withdraw from an ATM at any point in time is lower.
And what divides the classes most is the law. The law benefits those who can navigate it effectively. This boils down to people wealthy enough to buy, barrow, and steal professionals to navigate it for them. If the law were simple, everyone would benefit because everyone could navigate it easily.
All that to say, you aren't the only one.
Bankruptcy lawyers can shop for venues they think will be favorable to their case, and a lot of them bring their corporate clients to Drain’s court. And though Drain told the Wall Street Journal last year that any notion of legal friendliness was “an offensive fantasy,” the bitterly fought settlement in the Purdue Pharma case he announced from the bench on Wednesday would seem to provide ammunition for his critics.
A worthwhile read, in my opinion.
[1] https://www.bloombergquint.com/gadfly/purdue-pharma-oxyconti...
Class differences are understated or poopooed in American media, and by the Republican and Democratic party leadership. In real life, people talk about class all of the time. The people who own media companies and donate to political parties don't.
I generally agree with you but I'm not sure about this. IME, the media/government complex has done a very good job of convincing people that the primary cause they should be fighting about and talking about is identity politics, not class.
I have no experience like this, other than a bank contacting me if I am trying to use a card outside of my usual locations or outside of my usual amounts and I did not already alert them. Which sounds like a pretty reasonable anti fraud measure, and it only takes a couple minutes to solve.
And you can alert them prior to traveling or spending large amounts, and even do it online, so you are not inconvenienced at the time of purchase.
I also think it is easier than ever for the layman to buy whatever they want than ever. Everything is electronic and mostly instant. People can gamble on options sitting on their couch watching a game. You can buy equities for free. You can buy and sell in foreign currencies and Bitcoin with the clicks of a few buttons. All seems far more accessible than when I was a kid.
[edit]And if your bank has no issues with that, then I'd love to know what bank it is. Mine was pretty sketchy about moving more than 3k at once per day.[/edit]
But I wire much larger amounts of cash all the time online for real estate transactions, and I generally do not even have to talk to someone at the bank. I can do it all online.
Edit: I have not needed to send $3k via Zelle yet, but according to BoA’s website, $3,500 in 24 hour time period should not be a problem:
https://www.bankofamerica.com/online-banking/zelle-transfer-...
Just because it's uncommon, doesn't mean you shouldn't do it. In fact, the justification for these types of controls is normal people don't do those type of transactions.
Think about that carefully, and you'll start to smell the rat decaying under the floor. In a way, the system is architecting itself to keep the fiscal freedom of the populace low to catch outliers that may just be criminals.
I've just never been able to convince myself that there isn't some economic reality shaping going on there that people don't feel comfortable either talking about or admitting. If I can't easily do a transaction, but that transaction would be an example of good business that everyone wins from; I'd possibly be dissuaded from even trying.
That seems counter to incentivizing good business to facilitate economic mobility.
It is a pretty simple form identifying the parties in the transaction.
https://www.irs.gov/pub/irs-pdf/f8300.pdf
I do not see how anyone can say it is difficult to comply with this, regardless of the issue of whether or not it should or should not be required.
If there is any part of the system that is designed against lower socioeconomic classes, it is law enforcement (and TSA) being able to seize cash for no reason (civil asset forfeiture). But that has nothing to do with banks or the IRS.
Tools arise when the inventive require them. Those same tools become weapons of oppression when the right (wrong?) people start to use them for their own advantage.
It's this sort of sentiment that "the govt. needs to do more, we need more retribution" that explains why the US has such a high prison population. There is the perception that criminals are not being punished, but this is wrong: they are, but it is not in the news except for just a tiny number of noteworthy cases.
Painkiller addiction sucks, but so does chronic pain.
The "perception" is that criminals with power, wealth, and connections aren't being punished, and that's because they aren't. After Enron our justice department lost whatever appetite it had for meaningful criminal prosecution of corporate execs, there's even a book about it:
https://www.amazon.com/Chickenshit-Club-Department-Prosecute...
People who get put away for white collar crimes are punished because they stole from someone wealthier or more powerful than them. Hardly anything is systematically being done about "white collar" crimes affecting ordinary disempowered people, which is why millions of workers in the U.S. experience wage theft each year.
Scott W. Rothstein,Reed Slatkin,Bernie Madoff,Tom Petters,Allen Stanford,
If the justice system would try to actually dole out justice instead of maintaining the status quo, we might actually live in a better world. As it is, the world fucking sucks, and I refuse to defend the status quo.
The Sacklers would have to be complete morons(indeed, self-destructive morons) to have a settlement that did not include legal immunity, because otherwise they will get sued again and again and again. "Sure, we will give you this money and then someone else can file a lawsuit against us later" is not a stance you can reasonably expect out of anyone.
Instead, we ought to be asking "Why settle?" If you want to understand what's going on instead of feeding the outrage beast that the media has been nurturing in you for the last couple of decades, ask that question. And it's a good question: if it is such a slam-dunk, why did the government say, "Sure, we'll settle?"
Possible answers -- ones that someone could maybe do something about -- would include "Because the lawyers would eat up all of the money" and "There was a payoff to the right parties" and "The government wants the money now instead of later" (this one can be thrown out given the fine repayment period) and "the government feared losing its case." Feel free to add more.
It's a lot more constructive than being pointlessly angry.
I don't have a dog in this fight, but I know where my sympathies will lie when it happens.
So, its not just "both sides compromise", there are parties affected by this that are giving up something without getting anything in return.
https://www.hirschlerlaw.com/newsroom-publications-chapter-1...
The state gave up...the death penalty. Life without parole. Life with parole. Long sentences. Any sentences. It's too much! I don't accept that we should be completely unable to make white-collar criminals go to prison even when their willful actions caused or contributed to the deaths of maybe half a million people. [1]
Why did the state need to settle?
Or is this just immunity from civil cases, and not criminal? I'm actually not clear on that very important distinction.
[1] That number is a guess. <https://www.cdc.gov/drugoverdose/deaths/index.html> says "Nearly 841,000 people have died since 1999 from a drug overdose. ... Opioids were involved in 49,860 overdose deaths in 2019 (70.6% of all drug overdose deaths)." If we assume that year is representative, that's over half a million opioid deaths in total. If that year is not representative, there still were a lot of opioid deaths, and my greater point stands.
Tobacco use kills >7x as many people in the US every day/week/month as all opiate overdoses.
Many of the people who started on legally prescribed opioids didn't know how addictive and dangerous they were, and the Sacklers are responsible for that.
If your doctor tells you it's safe and non-addictive and will ease your suffering, I'm willing to bet you'll believe them.
That all just got sacrificed.
Did it? This settles the Sacklers’ civil claims. I don’t think you can discharge criminal liability in bankruptcy court.
> Did it? This settles the Sacklers’ civil claims. I don’t think you can discharge criminal liability in bankruptcy court.
I'm confused on that point. What you're saying makes sense but the article mentions "a bankruptcy deal with Purdue Pharmaceuticals that allows the Sackler family to avoid criminal prosecution," suggesting otherwise.
[edit: and that 15 states have signed on in some way adds to the plausibility of consequences of this deal extending beyond bankruptcy decisions.]
A reason these kinds of things tend to get sorted out in civil court (where no sentence is on the table whatsoever) is that criminal cases are much harder to win. Criminal defendants are presumed innocent, which isn't just a platitude, but also a principle reflected in a bunch of ways in the law and rules of the court.
There are plenty of places where people have disappeared for less, including in the US. Now, I'm not advocating anything extrajudicial here, but let's not be naive and pretend like there's nothing that could be done.
To elaborate, I don't think even the prosecutors went for the win here. I think they went for some kind of certainty that they could live with. And this is the result.
Even then, the sentencing guidelines complicated things for prosecutors. None of the offenses Madoff was convicted of carried a life imprisonment sentence, but the sentencing guidelines calculations called for one, which meant he had to be charged with the statutory maximums for all his offenses.
My point isn't that the Sacklers couldn't be charged criminally, just that the rules for doing so are complicated, and prosecutors can't just make them up. A not-unlikely result of trying to secure a 150-year sentence for a Sackler is that they might simply win the case.
If you have a theory of how the Sacklers and their henchpeople could be made to face decades in prison, a straightforward way to articulate that theory would be to cite the offenses you'd see them charged with. Then we can look at the jury instructions for those offenses and see how difficult it would be to convict them under those offenses.
We've established these tactics and techniques are apparently legal and morally justifiable, so let's put the screws to those who truly deserve it. Worst case, maybe the Sacklers will even use some of those billions to take some of these issues to the Supreme Court and unfuck the system a little bit for the rest of us.
I'm not here to defend the Sacklers, who are odious. I'm just saying that there are reasons they aren't on trial for their lives, but rather having their assets attacked.
(I have no opinions about the immunity from further suit they've apparently obtained.)
[0]: https://www.mass.gov/files/documents/2019/01/31/Massachusett...
"Justice will always be impossible. You should just give up and accept that great crimes will always be rewarded by billions." -you
(Or, of course, if you intended to kill people).
This brings me back to: I don't really understand the extent of this deal. Apparently 15 states have agreed to it. Does that mean that they've granted immunity to criminal prosecution in those states?
Nobody here is claiming the Sacklers are good people, but being evil isn’t a crime. Nobody here seems to be able to point to a law they’ve broken and not been charged under.
Broadly speaking, the legal framework is there. Its the legal willpower that is lacking.
Where are the legislators crafting new laws that specifically spell out that you'll go to prison for the rest of your life if you misrepresent the effects of medication to the FDA and doctors in a way that causes this much harm? Or do we really think the exact same thing won't happen again?
You know it. I know it. Every doctor knows it. Every nurse knows it. Some people just have problems with that whole arena of medications, and we stopped selling laudanum at the corner store some time ago. OxyContin not addictive -- whom are you trying to kid? Everyone just nudged and winked each other, then wrote the scripts. The culpability is diffuse. Everyone going "Shucks golly, we had no idea!" is not convincing.
They made it, but we all bought it: hook, line and sinker. And we wanted to. And we knew better.
The Chinese literally declared war on Great Britain because they sold Opium to the Chinese population and refused to stop[1]. That's how serious and nation-ending this drug is. I cannot imagine how much lack of respect, if not open contempt, one must have for the law to do what the Sacklers did.
Given the seriousness of their crime and the untold amount of destruction it has done to America, why should they not be endlessly sued? Or face a worse punishment? This settlement communicates to me that our legal system is actually not able to prosecute them to the fullest and is acknowledging that, which should really concern everyone.
This is likely most of it. The other shoe, which has yet to drop, is criminal prosecution of the Sacklers who were involved in the company’s day-to-day affairs.
The Sacklers deliberately and cynically killed hundreds of thousands of people. They made over $10 billion dollars.
And the punishment? They have to put a couple of billion back. They still made billions.
I would note that opioids have cost America a trillion dollars: https://www.cnbc.com/2018/02/12/economic-cost-of-the-opioid-...
Their $2 billion fine would pay for two weeks of the damage they have caused over a decade.
----
They completely won. Complete victory for them. Complete loss for justice.
The law is supposed to act as a deterrent. This is the reverse of a deterrent.
Way to set and example for the next one.
"15 States Sign on to Proposed $4.5B Opioid Settlement With Purdue Pharma, Sackler Family"
https://www.thinkadvisor.com/2021/07/12/15-states-including-...
"In addition to Massachusetts, New York and Minnesota, the other states who have signed on include Colorado, Hawaii, Idaho, Illinois, Iowa, Maine, Nevada, New Jersey, North Carolina, Pennsylvania, Virginia and Wisconsin."
https://www.nytimes.com/2021/07/08/health/purdue-pharma-opio...
Longer story short they piped the earnings from the opioid crisis out of company for decades and then when the net was finally closing on them, they filed for bankruptcy in a court of their choice with a very favorable judge. It is this same judge who granted the full immunity.
Disgusting.
> "This is a bitter result," Federal Judge Robert Drain said Wednesday in a lengthy explanation of his approval of the settlement. "I believe that at least some of the Sackler parties also have liability for those [opioid] claims... I would have expected a higher settlement."
Several states have already announced plans to appeal the settlement.
This is unlikely to be the last word we hear about this.
P.S. I'm being ironic... sort of.
-- Simone Weil
It didn't ultimately work as a combination of media exposes causing public outrage and his many victims sueing him anyway eventually got the government to renege on the deal, the man who originally granted it to resign in shame, and Epstein is dead now.
I, of course, wish we didn't need to rely on a future spiraling outrage cycle to force the Justice Department to actually hold rich criminals accountable for their crimes, but there is at least some solace in the hope that it might happen to the Sackler family, too.
Is this a common thing that happens in bankruptcy cases? Is this really justice?
Opioids III: The Sacklers: Last Week Tonight with John Oliver
this comment will age well
I can guarantee with absolute certainty that we won’t see this same situation with COVID vaccines, as Pfizer, Moderna, and J&J don’t have any liability for their vaccines, as they were created during a public health emergency [1][2]
The reasoning is nobody would make vaccines if they had unlimited liability.
[0] https://en.m.wikipedia.org/wiki/National_Vaccine_Injury_Comp... [1] https://en.m.wikipedia.org/wiki/Public_Readiness_and_Emergen... [2] https://www.law.cornell.edu/uscode/text/42/247d-6d
I did a number of hard drugs in my misspent youth, including Oxycontin. It was available and people in my social circle did it, and the Sackler family played zero role in my decision. More broadly I think hard drugs should be decriminalized (I am decades past using them myself). I guess I'm a little unclear as to what exactly the Sacklers did that's so terrible. Seeing as alcohol probably wrecks 10x the social damage that opioids do, are the Coors family monsters? The guy who founded Sam Adams or manufactures Smirnoff? What's the distinction?
Many people started on it as such.
You on the other hand knew what you were getting into. Big difference.
This thread lays out compactly some of the Sacklers’ perfidy:
the crime isn't selling oxycodone. pharmaceutical companies are allowed to do that. they're not allowed to make claims about how their time-release formulation makes oxycodone much less addictive, when they know that isn't true (or at least lack sufficient evidence). on top of that, they gave financial incentives to doctors to write prescriptions.
while I don't think it would be appropriate to have heroin for sale at CVS, I do think people should have some way of purchasing pure forms of the drug after being educated on the risks. that doesn't imply that I have to accept fraudulent marketing of a dangerous product and corruption of the doctor-patient relationship.
You can run a pot shop legally in Washington state but you cannot lie about what you are selling. Is that not one of the arguments for legalization of drugs in the first place? With legalization the drugs can be regulated and monitored for quality, purity, etc…
I mean, we have 500+ years of human history where people have become addicted to hard drugs without a marketing campaign. Including many in that same heroin/opium/morphine family. Maybe Occam's Razor is that people would've done the oxys regardless of what the Sacklers disclosed about the chemical compound....?
"Settled"
They knew the addictive nature of Oxycontin and that tolerance builds up fast, yet they still told sales reps to pressure doctors to always prescribe subsequent amounts be taken at 12 hours intervals (and not at 8 hour intervals to account for the tolerance buildup). That's fucking egregious. The entire family deserves to be put up against the wall.
Purdue Pharma knew about “significant” abuse of OxyContin in the first years after the drug’s introduction in 1996 and concealed that information. - https://www.nytimes.com/2018/05/29/health/purdue-opioids-oxy...
It seems like both the FDA and Purdue thought / hoped it would be less addictive, but this was not to be the case. And after it became clear from real-world data that this was not true, the FDA still didn't do anything about it?
> a Canadian physician, Dr. Brian Goldman, wrote that the findings turned thinking about the supposed safety of long-acting opioids like OxyContin on its head by showing that drug abusers “coveted” such drugs. “This should ring alarm bells,” Dr. Goldman, who was then a paid speaker for Purdue Pharma, wrote in the editorial.
Why wouldn't the FDA act on this alarm? Why would we rely on a pharmaceutical company to police its own drug when there is a clearly a massive conflict of interest? Isn't this what the FDA is for?
We subjects don't decide our laws and regulations. [0] Instead, those are written by lawyers and lobbyists in the employ of reptiles like the Sacklers. They make the rules by which they play, so when we're told to "hate the game, not the players", well, they get that hate too.
[0] https://scholar.princeton.edu/sites/default/files/mgilens/fi...
I think everyone who wants a good background on this issue should read this:
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2622774/
Purdue misrepresented many facts in their aggressive marketing.
Most people who take opiods do not get addicted.
And most people who are addicted did not start with a legitimate prescription--they started using it as an illicit drug.
Perhaps you could like, read before you post incorrect statements, or so that your attempts at trolling won't be so easily shot down.
1. The narrative is that some poor guy took pain meds for a legitimate reason then ended up addicted. While this does occur, it's actually not very common.
> Among people who are prescribed opioids, addiction is relatively uncommon. The percentage of patients who become addicted after taking opioids for chronic pain is measured in the single digits; studies show an incidence from less than 1 percent to 8 percent. Most of the estimates are skewed toward the low end of this range, when those at risk (due to a history of substance abuse or, to a lesser but meaningful extent, a concurrent mental illness) are removed from the sample.
2. Most addicts had a history of drug abuse.
> People who abuse pills are rarely new to drugs. The federal government’s 2014 National Survey on Drug Use and Health, for example, revealed that more than three-fourths of misusers had used non-prescribed benzodiazepines, such as Valium or Xanax, or inhalants. A study of Oxycontin users in treatment found that they “were not naive individuals with accidental addictions who were introduced to painkillers by their physicians as reported by the media … [Instead they had] extensive drug use histories.”
It's hard to bring this up without straying into classism or victim blaming. The reality is that most people without comorbidities and abuse history are quite safe, and these are drugs we need.
[1] https://www.theatlantic.com/ideas/archive/2019/08/what-ameri... [2] https://www.nejm.org/doi/full/10.1056/NEJMra1507771
My claims are actually backed by published research (cited within the Atlantic article if you want to check)... Maybe you could like read before you get shot down.
> Although published estimates of iatrogenic addiction vary substantially from less than 1% to more than 26% of cases, part of this variability is due to confusion in definition. Rates of carefully diagnosed addiction have averaged less than 8% in published studies, whereas rates of misuse, abuse, and addiction-related aberrant behaviors have ranged from 15 to 26%. A small (estimated at 4%) but growing percentage of persons who are addicted to prescription opioids transition to heroin
In short, people who have no history of addiction (and to a lesser extent comorbid mental illness) are unlikely to become addicted, but of course even a small chance is still worth considering.
The media isn't lying about the individual cases they mention. Yes, there are thousands of people like your friend. But I also think they built a narrative about these drugs being extremely addictive when the truth is much more subtle.
From that article, albeit citing the prosecutor's case, "... internal Purdue communications are cited by the attorney general of Massachusetts in a new court filing against the company, released on Tuesday. They represent the first evidence that appears to tie the Sacklers to specific decisions made by the company about the marketing of OxyContin. The aggressive promotion of the drug helped ignite the opioid epidemic.
The filing contends that Mr. Sackler, a son of a Purdue Pharma founder, urged that sales representatives advise doctors to prescribe the highest dosage of the powerful opioid painkiller because it was the most profitable."
[1] https://www.nytimes.com/2019/01/15/health/sacklers-purdue-ox...
Edit to add: Actually, there's a pretty good (and seemingly neutral) history of the Massachusetts case on Wikipedia, with background info and related cases:
There's also the factor of systemic issues that drove doctors to overprescribe: Pain Management Questionnaires[1]:
> ...pain management is the only clinical measurement among eight components of Hospital Value-Based Purchasing, and many physicians see their patient satisfaction scores in patient surveys drop as a result of changes in their prescribing practices. These scores affect compensation and promotion.
It wasn't the Congress pushing banks to get homes to everyone. (requiring things like a job disproportionately impacts my district!) Nevermind the tremendous number of ways Congress could have intervened.
It wasn't the fault of the borrowers. No, they are all noble people just struggling to get by on pennies. They weren't buying houses on credit and paying by flipping them on the run-up. Deep down, a lot of people knew they couldn't afford the house, but chose to do it anyway.
We saw this play out with cigarettes. The execs get dragged before congress and their performance was certainly ludicrous, but somehow the blame is entirely on them. The result is cigarettes are taxed more. They kill, but are taxed more. So the outrage was used to assign blame so the states could pull in more money.
Same thing here as far as I can see. Everyone has enjoyed their cut of the pharma pie, and when blame goes out the state which has been regulating this entire market heavily from top to bottom is blaming someone else and then absolving liability in exchange for money.
We really need to stop looking for single points of blame for these things. If it's at the point where we say, "look at the last 20 years how obviously reckless this behavior was" it's well beyond the fault of the person exhibiting that behavior.
I just think the public is overly reactive to whatever problem is at hand. When the drugs are causing crime we want them legalised. When they are causing addiction we want to producers prosecuted.
Opiods helped a lot of people. And the media has constructed this narrative around them being highly addictive which isn't really true.
The reason I bring it up is that it's a good test of what will happen if we do legalise drugs.
So the claim is that there were a bunch of so-called pain clinics, but which were in reality just fronts for prescribing opioids to addicts. This might be true.
But that's effectively the same result as what we will have if we fully legalize drugs--they are just proposing we replace the 'pain clinics' with 'dispensaries' and dispense with the wink-wink claims of addicts needing to feign shoulder/back/whatever pain.
I actually lean in favour of legalizing drugs, but I just sense a bit of hypocrisy and pitchfork-raising in the internet mob.