United Group Insurance

States split by party on accepting Purdue Pharma settlement

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September 13th, 2019 by Ric Hanson

MINNEAPOLIS (AP) — The opioid crisis has hit virtually every pocket of the U.S., from rural towns in deeply conservative states to big cities in liberal-leaning ones. But a curious divide has opened up. The nation’s Republican state attorneys general have, for the most part, lined up in support of a tentative multibillion-dollar settlement with OxyContin maker Purdue Pharma, while their Democratic counterparts have mostly come out against it, decrying it as woefully inadequate.

Exactly why this is so is unclear, and some of those involved suggested it can’t necessarily be explained by the way the Republican Party is considered more friendly to big business. Some of the attention has focused on the role played by Luther Strange, a Republican former Alabama attorney general who has been working for members of the Sackler family, which owns Purdue Pharma.

People familiar with the negotiations say he was at a meeting of the Republican Attorneys General Association over the summer, sounding out members about a settlement months before a tentative deal was struck this week. Purdue has been generous in recent years to RAGA, contributing more than $680,000 to its campaign operation from 2014 through 2018. The company also gave to the organization’s Democratic counterpart, the Democratic Attorneys General Association, over the same five-year period, but far less: about $210,000.

Nearly half the states and lawyers representing some 2,000 local governments have tentatively accepted the settlement deal, according to people familiar with the talks. Under the deal, the company would declare bankruptcy and remake itself as “public benefit trust,” with its profits going toward the settlement. An Associated Press survey of attorney general offices shows 25 states and the District of Columbia have rejected the current offer.

The only states with Democratic attorneys general to sign on are Mississippi and Michigan, which is one of the few states that haven’t actually sued Purdue. “I don’t think you should read a whole lot into it,” Iowa Attorney General Tom Miller, a Democrat, said of the partisan divide. “My view is it’s a pretty close call to join or not. There are good arguments on both sides. All my colleagues who have made their decisions have made them in good faith.”

Miller said he expects a bipartisan group of states to keep working together on possible settlements with other defendants in the opioid cases. Paul Nolette, a Marquette University political scientist, said in an email that the GOP attorneys general and local governments “don’t see this as a bad deal under the circumstances.” But he said Democrats have been stung by a backlash over settlements over foreclosures years ago, and they “see political risks for not pushing for more.”