Dividends and Purdue Pharma tables plan to end lawsuits

Purdue Pharma is not the only Pharma company which made and sold prescription opioids, but it made the most money and for years was the number one producer of opioids. The family that owned Purdue Pharma is called the Sackler family and they achieved billionaire status with their ownership. Eventually because people became addicted and died from the usage of opioids, the government sued Purdue Pharma.

Similar to all cases, time is not your friend if you believe in justice, but time is on your side because eventually justice will prevail. According to an article by Jan Hoffman and Mary Williams Walsh, Purdue Pharma will transform itself from making money for the Sackler family to a new corporation with revenue exclusively toward abating the addiction epidemic that it help create.

The money will go to three areas – one to individuals, one for hospitals and insurers, and the third for state and local governments.

In return for the restructuring and revenue changes, the Sackler family lawsuits would be dropped. The legal fees were running at $2 million a week.

By 2024, the people running the company can sell it on the open market.

The plan needs to be voted on by many different parties, but most are on board. however even if the State Attorney General disagrees, they will likely back it because the alternative is more legal fees and less help for those who need it.

Linking to dividend paying stocks, when a company is sued and many companies are sued, it is not a bad thing, but when they deliberately break the law or the norms of society, the Purdue Pharma is an interesting solution. In Purdue Pharma after the restructuring the company’s revenues go to the victims first, then the shareholders. It is another reason why buying into ethical companies which make profits is a good investment.

There are more questions than answers, till the next time – to raising questions.

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