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Judge tosses deal shielding Purdue’s Sackler family from opioid claims -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO. OxyContin prescription pills are displayed on a shelf in a Provo pharmacy, Utah (USA), April 25, 2017. REUTERS/George Frey/File Photograph

By Brendan Pierson

NEW YORK, (Reuters) – A settlement which would have protected the Sackler family who owned OxyContin maker Purdue Pharma from any future opioid lawsuits has been thrown out by a federal judge. This decision causes the bankruptcy court to halt the company’s plans for reorganization.

In a written decision, U.S. District Judge Colleen M. McMahon of Manhattan stated that bankruptcy courts did not have legal authority to exonerate the family.

Purdue’s lawyers could not be reached Thursday night for comment.

The company was accused of selling large quantities of OxyContin to patients while underplaying its addiction potential and abuse. This it denied. The company filed for bankruptcy in 2019 and is now facing numerous legal challenges.

Robert Drain, U.S. Bankruptcy Judge in September approved a plan for reorganization that included a settlement of lawsuits against the company. The Sacklers would pay $4.5 Billion and will be exempt from any future liability.

McMahon however stated that the bankruptcy law didn’t allow for such a release because the Sacklers hadn’t filed bankruptcy.

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