Sackler family says billions collected from Purdue not abuse of bankruptcy law -Breaking
[ad_1]
© Reuters. FILE PHOTO: OxyContin prescription pills are displayed on a shelf in a Provo pharmacy, Utah (USA), April 25, 2017. REUTERS/George Frey/File photoBy Maria Chutchian
(Reuters.) Monday’s comments by the Sackler clan were that billions of dollar they received from Purdue Pharma prior to the company filing for Chapter 11 were not the result of a “secret scheme” to abuse the bankruptcy process.
In court papers, lawyers for the Sackler family members, who controlled Purdue, rejected U.S. District Judge Colleen McMahon’s suggestion that the more than $10 billion they collected from Purdue in the years leading up to the 2019 bankruptcy could amount to an abuse of the Chapter 11 process.
There is no evidence to suggest the payments “were made as part of a secret plan” to abuse the bankruptcy system, the Sackler lawyers said. They called the idea “pure fiction.”
McMahon will examine whether to reverse a decision that exempts the Sacklers of liability for the opioid epidemic.
Sacklers claimed that the payments were made because the company grew and increased its revenue after Purdue restored OxyContin’s patent in 2008.
In exchange for future protection, the Sacklers have donated $4.5 billion towards a settlement for opioid-related litigation.
Purdue claimed in Monday’s separate filing that these protections were necessary as the company can not file for bankruptcy unless it resolves opioid-related claims against the Sacklers and Purdue.
The U.S. Department of Justice’s bankruptcy watchdog, the U.S. The U.S. Department of Justice’s bankruptcy watchdog, the U.S. Trustee has been opposed to this type litigation shield for many years and stated on Monday in court filings: “The law does not offer any such protections for those who have never filed for bankruptcy.”
U.S. Trustee accused the Sacklers of “piggybacking” off Purdue’s bankruptcy to protect themselves.
“If this is not abuse of the bankruptcy system, it is unclear what is,” the trustee said.
Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.
[ad_2]
