Each of us has a moral compass which we go about on daily, weekly, monthly and yearly basis and that is a good thing. Each of us knows what is right and wrong, but in the grey area when increasing large amounts of money are involved, what is the right thing to do? There is no easy answer and those with access to funds and those without tend to have slightly different answers. (one can see that with proposals on wealth tax).
In an article by Geoff Mulvihill of the Associated Press, the lead lawyer for Purdue Pharma Marshall Huebner said to the judge, accept what is on the table, it is reasonable or fair or be prepared to face decades of law suits which could last decades before any money is paid to victims.
If you experience deep pain in any part of your body on a daily basis you would want to take something to dull the pain, that is a normal reaction by people. Purdue Pharma produced a pill which helped with the lessening of the pain, but over the years changed the formula to make it more addictive. Once you were on it, it was very hard to come off and many people have died because of the addiction.
Purdue Pharma has admitted fault and in a proposed settlement, the family would contribute $4.5 billion in cash and control of a charitable fund. They would lose their ownership in the company and the new company would be formed to ensure profits helped the victims and fight the epidemic. Much of the funds would go into treatment centers or things over departments of health have to pay for.
In the lawsuit, there are many defendants and some states have agreed, but others want a scorched settlement on the family, to bring the family down from billionaire status to less than millionaires. The problem is the family still having the money they can stretch the litigation for years and stay wealthy.
Linking to dividend paying stocks, one of the great advantages of the companies is they have access to great resources to go after the competition, to ensure lobbyists ensure government and regulations do not change too much to make the company less profitable and a host of other elements. As an investor you like this, if you did not like the company for a reason, it is hard to fight a giant, not impossible, but hard. (remember the story of David and Goliath – it is possible). As an investor, you tend not to worry about those that do not like the company for one reason or another, as long as from your moral compass the company is doing good.
There are more questions than answers, till the next time – to raising questions.