$2.3bFederal taxes
$2b
Beacon’s
and
Rosebay’s
tax
bills
$306m
State
and
local
taxes
A
$3m
house
in
Amagansett, N.Y.
More
than
$1
billion
ended
up
in
Purdue-associated
companies
registered
in
Luxembourg
and
the
British
Virgin
Islands.
An
additional
$570
million
was
sent
to
Mundipharma
International
Ltd.,
the
Sacklers’
global
pharmaceutical
arm.
The
family
is
weighing
the
sale
of
the
business,
which
could
fetch
as
much
as
$5
billion.
...
and
Cornice,
Data,
and
Millborne
are
trustees
of
trusts
tied
to
the
Sacklers.
Linarite,
Perthlite,
and
Banela
are
each
partially
owned
by
Cornice,
Data,
and
Millborne
...
Hercules
Trust
(Beneficiaries
unknown)
Trust
for
Jonathan’schildrenTrust
for
Richard’schildren
57
The Sackler family and Purdue have proposed a settlement worth more than $10 billion with the states and cities that are suing for damages. Under the plan, the family would hand over the company to a trust controlled by the states and sell Mundipharma; the Sacklers themselves would foot $3 billion, though they continue to deny responsibility for the opioid crisis. Two dozen states have rejected the offer, including New York, Massachusetts, and Connecticut. James said New York would oppose “any deal that cheats Americans out of billions of dollars” and “allows the Sacklers to evade responsibility.” (“A critical mass of plaintiffs representing more than half of the U.S. population support the settlement framework,” Purdue said.) The bankruptcy judge in the case has paused other lawsuits against Purdue and the Sacklers until October while negotiations continue.
�With Anders Melin and Jeremy Hill
$893m
Luxembourgcompanies
$572m
MundipharmaInternational
Ltd.
$140m
BVI
companies
$88m
Companiesregisteredin
unknown
locations
Central
Eight
Realty
LLC
Cherry
Tree
Holdings LLC
... which, on behalf of Mortimer, bought ...
$3m
Rosebay
and
Beacon
received
the
bulk
of
the
Purdue
cash,
but
even
some
of
the
smallest
transactions
made
by
the
company
can
be
traced
back
to
the
family.
Three
companies—Linarite,
Perthlite,
and
Banela—were
paid
dividends
of
afew
million
each
from
Purdue
in
2012.
METHODOLOGY
○ The $10.8 billion figure is drawn from an audit report prepared by
AlixPartners LLP and Purdue. According to the report, $247 million went to loans that were repaid in full.
○ The information on cash transfers—from Purdue into Rosebay, Beacon,
Perthlite, Linarite, and Banela—and on tax payments is drawn from theAlixPartners and Purdue report (pages 27, 66).
○ Details on the ownership of Rosebay and Beacon, as described by the
attorneys general of Arizona and New York, come from a July 31, 2019,filing to the Arizona Supreme Court in
State of Arizona v. Purdue
and
affiliates
(page 5); and from a Sept. 13, 2019, filing to the Supreme Court
of the State of New York, Suffolk County, in
The People of the State of
New York v. Purdue Pharma
(page 6).
○ Particulars on the transfers from Beacon to Mortimer D.A., and the
purchase of New York real estate as described by the New York stateattorney general, can be found on page 7 of the Sept. 13 filing, in New Yorkproperty records, and in Suffolk County property records.
○ The figures for the Luxembourg and BVI companies are derived from the
AlixPartners and Purdue report (page 66) and Bloomberg News reporting.
○ Specifics on the ownership of Banela, Perthlite, and Linarite as described
by the New York state attorney general is on page 4 of the Sept. 13 filing.
○ Information on Kokino LLC’s holdings come from a November 2019 filing to
the U.S. Securities and Exchange Commission. The Sunriver ManagementLLC figure is based on Bloomberg News reporting that 20% of assetsmanaged by Sunriver are held by Kokino.
○ Details on Summer Road LLC’s holdings can be found in an August 2020
filing to the SEC.
○ Particulars on Stillwater Holdings LLC’s holdings are in an April 2020 filing to
the SEC. The stake is valued as of Aug. 19.
What
Happens Next
Forty-eight states are suing for damages.
They’re about split between accepting and
rejecting the proposed settlement.
Data
LLC
$3m $6m
A $16m Upper
East Side townhouse(in 2004) and sold it
in January for$38m
Linarite Holdings
LLC
PerthliteHoldings
LLC
Banela Corp.
CorniceFiduciaryMgmt. LLC Millborne Trust Co.