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US states say Sackler family abusing bankruptcy process in OxyContin case

15 7 1
01.12.2021

NEW YORK (AP) — A federal judge should reject a sweeping settlement to thousands of lawsuits against OxyContin maker Purdue Pharma, a group of states said at a hearing Tuesday, arguing that the protections it extends to members of the Sackler family who own the firm are improper.

States have credible claims that family members took more than $10 billion from the company, steered it toward bankruptcy, and then used a settlement crafted in bankruptcy court to gain legal protections for themselves, Washington state Solicitor General Noah Purcell told US District Judge Colleen McMahon.

“If that is not an abuse of the bankruptcy process,” Purcell said, “it’s unclear what would be.”

The plan, crafted largely by those with claims against Purdue and approved in September by a federal bankruptcy judge, calls for members of the Sackler family to contribute more than $4 billion in cash, plus the company itself, to fight the opioid epidemic, which has been linked to more than 500,000 US deaths in the past two decades, including deaths linked both to prescription and illicit drugs.

In exchange, members of the family are to be protected from lawsuits accusing them of spurring the crisis. The suits accuse the company and family members of helping to spark the overdose crisis by aggressively marketing OxyContin, a powerful opioid painkiller.

They would not be........

© The Times of Israel


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