Family's web makes it hard to track cash from opioid maker

Cities and states suing Purdue Pharma L.P. for its role in the opioid crisis say its family owners withdrew billions in profits. But where is that money and how much should be fair game in ongoing settlement talks?

Answers are complicated by the way members of the Sackler family have shielded their wealth in a web of companies and trusts, a review by The Associated Press has found. Some are registered in offshore tax havens far from Purdue's Connecticut headquarters.

The web's complexity and offshore reach could affect the calculus for government lawyers as they pursue the company, including how to calibrate demands in settlement negotiations.

All but two U.S. states and 2,000 local governments have taken legal action against Purdue, other manufacturers and distributors. Sixteen states have sued family members by name.

Purdue's CEO has said the company could file for bankruptcy. And this week, news organizations reported that Purdue, the family and government lawyers are negotiating a possible settlement, valued at $10 billion to $12 billion, that would see the Sacklers give up company ownership and contribute $3 billion of their own money.

But AP's review of court papers, securities filings by companies that have had dealings with Purdue, and documents leaked from an exclusive Bermuda law firm, show how the family has tried to protect its wealth.

"The Sacklers allegedly moved significant money offshore, which potentially would make it harder for any judgment creditor to reach," said Mark Chalos, a lawyer representing counties and cities including Nashville, Tennessee, in suits against opioids makers.

"This is the real question and you're seeing it playing out in a lot of different states in different ways," said Elizabeth Chamblee Burch, a professor of law at the...