Law [Purdue Pharma's Opioid Lawsuit] Supreme Court Hears Arguments Against $6 Billion Settlement That Grants The Sackler Family Civil Immunity

[Loiosh]

Thou shalt not get away with it.

 

[Blayt7hh]

Billionaire Sacklers’ immunity threatened as DOJ moves to block opioid deal
By Beth Mole | 09/16/2021​

Members of P.A.I.N. (Prescription Addiction Intervention Now) and Truth Pharm staged a protest outside Purdue Pharma headquarters over the recent controversial opioid settlement.
​

The Department of Justice is fighting to strip the billionaire Sackler family of the sweeping legal immunity granted as part of a controversial $4.5 billion opioid settlement.

The department filed a motion late Wednesday to block the implementation of the settlement until appeals can be heard in a higher court. Attorneys for the department argued that some aspects of the deal could go into effect quickly, complicating the appeal, according to NPR. Along with the DOJ, Connecticut, Maryland, the District of Columbia, and Washington state are also preparing to fight the settlement.

The Justice Department also requested an expedited hearing within the next two weeks.

William Harrington, who serves as US trustee for the Justice Department, said in filings Wednesday that Federal Bankruptcy Judge Robert Drain was wrong to approve the settlement on September 1 and that the decision would likely be overturned.

The settlement essentially dissolves Purdue Pharma, which was owned and largely run by the Sacklers. The company aggressively and deceptively marketed OxyContin beginning in the 1990s and is largely seen as sparking the devastating epidemic of opioid addiction and overdoses that has killed nearly 500,000 people in the US over the last two decades. Purdue pleaded guilty twice for wrongdoing in its marketing of OxyContin in that time. The settlement put to rest thousands of opioid-related lawsuits against Purdue, which had declared bankruptcy under the crushing litigation.

The Sacklers were directly involved in Purdue's opioid business and, by their own account, pocketed more than $10 billion from opioid sales. But the family has repeatedly claimed no wrongdoing and said it acted ethically.

Undone deal
Still, as part of the settlement, the Sacklers agreed to never again manufacture opioids and provide $4.325 billion to fund opioid addiction prevention, treatment, and recovery programs. They also agreed to hand over control of family foundations valued at no less than $175 million.

But that $4.5 billion agreement came with a big string attached: the Sacklers demanded that they be granted legal immunity from future opioid-related claims. Such liability releases can be granted in bankruptcy cases, but the Sacklers themselves did not file for bankruptcy.

Judge Drain, who himself called the settlement a "bitter result," argued in his approval of the deal that it was the best way to get any money out of the Sacklers. "I believe that at least some of the Sackler parties also have liability for those [opioid] claims... I would have expected a higher settlement," he said. But "without the releases, the plan would unravel."

In filings Wednesday, DOJ trustee Harrington argued that the releases are unconstitutional because they deprive people of the ability to make legal claims—a form of property—against the Sacklers, according to The Wall Street Journal.

"The Sackler family's attempt to hold [Purdue's] reorganization hostage unless the non-debtor releases are imposed does not justify taking third parties' property... without their consent, adequate notice, or any opportunity to be heard," Harrington said.

https://arstechnica.com/science/202...ened-as-doj-moves-to-block-opioid-deal/?amp=1

That is great news. I really hope something comes of this. I was really disappointed when they were cut that deal. Before the deal I was excited and hopeful that our society was growing and starting to hold the rich accountable. That deal crushed that hope.

 

[Arkain2K]

That is great news. I really hope something comes of this. I was really disappointed when they were cut that deal. Before the deal I was excited and hopeful that our society was growing and starting to hold the rich accountable. That deal crushed that hope.

Boom!

Judge tosses $4.5 billion deal shielding Purdue’s Sackler family from opioid lawsuits
Published Thu, Dec 16, 2021

​

A federal judge overturned a roughly $4.5 billion settlement that legally shielded members of the Sackler family who stand accused of helping fuel the U.S. opioid epidemic, a decision that threatened to upend the bankruptcy reorganization of their company, OxyContin maker Purdue Pharma.

U.S. District Judge Colleen McMahon said in a written opinion on Thursday the New York bankruptcy court that approved the settlement did not have authority to grant the Sacklers the legal protection from future opioid litigation that formed the linchpin of Purdue’s reorganization.

Purdue said it would appeal the decision.

“While the district court decision does not affect Purdue’s rock-solid operational stability or its ability to produce its many medications safely and effectively, it will delay, and perhaps end, the ability of creditors, communities, and individuals to receive billions in value to abate the opioid crisis,” Purdue Chairman Steve Miller said in a statement.

The Sacklers had insisted on the legal shields, known as nondebtor releases because they protect parties that have not filed for bankruptcy themselves, in exchange for contributing $4.5 billion toward resolving widespread opioid litigation.

The Sacklers threatened to walk away from the settlement absent the guaranteed legal protections.

Representatives for the Sacklers did not immediately respond to a request for comment late on Thursday.

Attorney General Merrick Garland said in a statement he was pleased with the ruling.

“The bankruptcy court did not have the authority to deprive victims of the opioid crisis of their right to sue the Sackler family,” Garland said.

Washington State Attorney General Bob Ferguson, who had objected to Purdue’s reorganization, also praised McMahon’s decision.

“There cannot be two forms of justice – one for ordinary Americans and a different one for billionaires,” Ferguson said. “I’m prepared to take this fight all the way to the Supreme Court, if necessary, to ensure true accountability for the Sackler family.”

More than 95% of creditors – in this case predominantly plaintiffs suing Purdue and the Sacklers – voted to approve the drugmaker’s reorganization.

But eight states, Washington, D.C., Seattle and more than 2,600 personal injury claimants voted against Purdue’s reorganization, McMahon said. The U.S. Justice Department’s bankruptcy watchdog and the Manhattan U.S. attorney’s office also objected.

McMahon raised questions about more than $10 billion Purdue distributed to the Sacklers spanning a roughly decade-long period that preceded the company’s bankruptcy filing.

The Sacklers have faced allegations, which they deny, that they authorized the financial transfers to prevent the money from being drained in future litigation against Purdue. The Sacklers have said much of the money went toward taxes and investments, as opposed to their pockets.

McMahon’s ruling came a week after the Metropolitan Museum of Art and the Sacklers, long known for their philanthropy, announced an agreement to remove Sackler name from seven exhibition spaces.

Purdue filed for bankruptcy in September 2019 in the face of 3,000 lawsuits accusing the company and Sackler family members of contributing to a public health crisis that has claimed the lives of about 500,000 people since 1999.

The litigation accused the company and family members of aggressively marketing OxyContin while downplaying its addiction and overdose risks. The company and family members have denied the allegations.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York, agreed early in Purdue’s court restructuring to halt litigation against the company and Sackler family members, who had not filed for Chapter 11 protection themselves.

The Stamford, Connecticut, drugmaker last year pleaded guilty to criminal charges stemming from its handling of opioids. At the outset of its bankruptcy case, Purdue said there were a number of legal defenses it could mount in response to lawsuits alleging improper conduct.

Drain said it was clear the wrongful marketing of the company’s opioid products contributed to the addiction crisis that touched every corner of the country.

But he overruled objections to the legal releases shielding the Sacklers. Drain predicted that denying the releases would unravel Purdue’s reorganization – settlement aimed at steering funds toward communities reeling from the opioid epidemic – and result in the company’s liquidation, leaving little to nothing for victims.

McMahon, though, found that the Bankruptcy Code “does not authorize” granting such nonconsensual third-party releases.

https://www.cnbc.com/2021/12/17/jud...ielding-purdue-owners-from-opioid-claims.html

 

[Arkain2K]

 

[Arkain2K]

Federal judge rejects Purdue Pharma's settlement of opioid lawsuits over legal protections for members of Sackler family
By Rob Frehse and Evan Simko-Bednarski, CNN | December 16, 2021

A federal judge has overturned the opioid settlement of more than $4 billion that gave the Sackler family broad protection against civil litigation and resolved all outstanding civil suits against OxyContin maker Purdue Pharma.

The Bankruptcy Court lacked the statutory authority to give the Sackler family those protections and they are not permitted under the bankruptcy code, Judge Colleen McMahon of the Southern District of New York ruled Thursday.

Purdue Pharma said it would appeal the ruling, saying the decision would "delay, and perhaps end, the ability of creditors, communities, and individuals to receive billions in value to abate the opioid crisis," according to a statement from Steve Miller, Chairman of the Purdue Pharma L.P. Board of Directors.

"These funds are needed now more than ever as overdose rates hit record-highs, and we are confident that we can successfully appeal this decision and deliver desperately needed funds to the communities and individuals suffering in the midst of this crisis," Miller said.

The ruling upends critical protections that have shielded the Sackler family and their fortune from civil liability.

CNN has reached out to the Sackler family for comment.

Some attorneys general praise the ruling

Purdue Pharma declared bankruptcy in 2019, putting on hold thousands of lawsuits filed against it.

Following the initial settlement in September, family members of the late Dr. Mortimer Sackler maintained their denials of allegations against the family.

"While we dispute the allegations that have been made about our family, we have embraced this path in order to help combat a serious and complex public health crisis. We hope that the resolution will signal the beginning of a far-reaching effort to deliver assistance where it is most needed," the family said in a statement to CNN.

They also expressed some remorse for OxyContin's role for the opioid epidemic.

"It distresses us greatly that it also became involved in suffering from addiction or abuse. We are truly sorry for the suffering and loss people have experienced and recognize the anger or hurt that many people have felt alongside their grief," the statement said.

At least eight states previously appealed the controversial Bankruptcy Court decision, citing the low dollar amount among other issues.

And some attorneys general hailed the decision Thursday.

"This is a seismic victory for justice and accountability that will re-open the deeply flawed Purdue bankruptcy and force the Sackler family to confront the pain and devastation they have caused," Connecticut Attorney General William Tong said.

"Connecticut will not allow billionaire wrongdoers to hide behind the bankruptcy code to shield their blood money and escape justice," Tong added.

New York Attorney General Letitia James said her ongoing litigation against Purdue Pharma and the Sackler family would continue, adding she would "hold them accountable for their unlawful behavior, one way or another."

"We will get justice for the American people," James said.

https://www.cnn.com/2021/12/16/us/p...lawsuit-settlement-rejected-purdue/index.html

 

[Arkain2K]

 

[Blayt7hh]

Boom!

Judge tosses $4.5 billion deal shielding Purdue’s Sackler family from opioid lawsuits
Published Thu, Dec 16, 2021

A federal judge overturned a roughly $4.5 billion settlement that legally shielded members of the Sackler family who stand accused of helping fuel the U.S. opioid epidemic, a decision that threatened to upend the bankruptcy reorganization of their company, OxyContin maker Purdue Pharma.

U.S. District Judge Colleen McMahon said in a written opinion on Thursday the New York bankruptcy court that approved the settlement did not have authority to grant the Sacklers the legal protection from future opioid litigation that formed the linchpin of Purdue’s reorganization.

Purdue said it would appeal the decision.

“While the district court decision does not affect Purdue’s rock-solid operational stability or its ability to produce its many medications safely and effectively, it will delay, and perhaps end, the ability of creditors, communities, and individuals to receive billions in value to abate the opioid crisis,” Purdue Chairman Steve Miller said in a statement.

The Sacklers had insisted on the legal shields, known as nondebtor releases because they protect parties that have not filed for bankruptcy themselves, in exchange for contributing $4.5 billion toward resolving widespread opioid litigation.

The Sacklers threatened to walk away from the settlement absent the guaranteed legal protections.

Representatives for the Sacklers did not immediately respond to a request for comment late on Thursday.

Attorney General Merrick Garland said in a statement he was pleased with the ruling.

“The bankruptcy court did not have the authority to deprive victims of the opioid crisis of their right to sue the Sackler family,” Garland said.

Washington State Attorney General Bob Ferguson, who had objected to Purdue’s reorganization, also praised McMahon’s decision.

“There cannot be two forms of justice – one for ordinary Americans and a different one for billionaires,” Ferguson said. “I’m prepared to take this fight all the way to the Supreme Court, if necessary, to ensure true accountability for the Sackler family.”

More than 95% of creditors – in this case predominantly plaintiffs suing Purdue and the Sacklers – voted to approve the drugmaker’s reorganization.

But eight states, Washington, D.C., Seattle and more than 2,600 personal injury claimants voted against Purdue’s reorganization, McMahon said. The U.S. Justice Department’s bankruptcy watchdog and the Manhattan U.S. attorney’s office also objected.

McMahon raised questions about more than $10 billion Purdue distributed to the Sacklers spanning a roughly decade-long period that preceded the company’s bankruptcy filing.

The Sacklers have faced allegations, which they deny, that they authorized the financial transfers to prevent the money from being drained in future litigation against Purdue. The Sacklers have said much of the money went toward taxes and investments, as opposed to their pockets.

McMahon’s ruling came a week after the Metropolitan Museum of Art and the Sacklers, long known for their philanthropy, announced an agreement to remove Sackler name from seven exhibition spaces.

Purdue filed for bankruptcy in September 2019 in the face of 3,000 lawsuits accusing the company and Sackler family members of contributing to a public health crisis that has claimed the lives of about 500,000 people since 1999.

The litigation accused the company and family members of aggressively marketing OxyContin while downplaying its addiction and overdose risks. The company and family members have denied the allegations.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York, agreed early in Purdue’s court restructuring to halt litigation against the company and Sackler family members, who had not filed for Chapter 11 protection themselves.

The Stamford, Connecticut, drugmaker last year pleaded guilty to criminal charges stemming from its handling of opioids. At the outset of its bankruptcy case, Purdue said there were a number of legal defenses it could mount in response to lawsuits alleging improper conduct.

Drain said it was clear the wrongful marketing of the company’s opioid products contributed to the addiction crisis that touched every corner of the country.

But he overruled objections to the legal releases shielding the Sacklers. Drain predicted that denying the releases would unravel Purdue’s reorganization – settlement aimed at steering funds toward communities reeling from the opioid epidemic – and result in the company’s liquidation, leaving little to nothing for victims.

McMahon, though, found that the Bankruptcy Code “does not authorize” granting such nonconsensual third-party releases.

https://www.cnbc.com/2021/12/17/jud...ielding-purdue-owners-from-opioid-claims.html

 

[Arkain2K]

Uncertainty follows court's rejection of Purdue opioids deal
By GEOFF MULVIHILL - Associated Press| December 17, 2021

A federal judge's decision to reject a multibillion dollar opioid settlement involving OxyContin maker Purdue Pharma is being hailed as a step toward justice by advocates who have long called for greater accountability for the family that owns the company.

But not everyone involved in the arduous settlement process is celebrating, including some advocates who have lost loved ones to the nation's ongoing — and growing — addiction crisis. The ruling Thursday from New York-based U.S. District Court Judge Colleen McMahon is a blow to those who sought to use billions of dollars from Purdue and from the Sackler family members involved with the company to fight the epidemic.

“It could be dragged out for months, if not years,” said Cheryl Juaire of Massachusetts, who has lost two grown sons to opioid overdoses.

Juaire founded an organization for grieving parents and was a voice for victims on a committee during the Purdue bankruptcy proceedings that led to the settlement vacated this week.

“Every day, 265 people are dying. The attorneys are getting richer because they’ve still got a job to do, and lives are being lost,” she said. "When is somebody going to say, ‘This is all about the lives?’”

Avi Israel also lost a son to opioid addiction, but sees this week's ruling differently. Like Juaire, he has dedicated his life to fighting addiction, starting Save the Michaels of the World, a group that has helped get 1,200 people in western New York into addiction treatment this year.

He said Thursday's decision was the right one.

“You could give me all the money in the world; that’s not going to bring my son back,” said Israel, who also sits on a state board that helps distribute money New York brings in from opioid litigation.

Allowing lawsuits to move forward against Sackler family members could have a more long-lasting effect by deterring corporate executives from pushing medications they know could cause harm.

“I want them to know what it feels like for millions of us in this holiday season, when you sit at the table and you stare at an empty chair and you know that all of that could have been avoided," he said.

The contrasting views of justice in the Purdue Pharma bankruptcy reflect a complicated case at the center of multiple lawsuits seeking to hold players in the drug industry accountable for the nationwide epidemic of addiction and overdoses. Combined, prescription and illicit versions of the drugs have been linked to more than 500,000 deaths in the U.S. over the past two decades, and it's gotten worse during the coronavirus pandemic. Federal officials say there were 100,000 overdose deaths in the 12 months that ended in April, the majority of them from opioids.

The Purdue case is the highest-profile, but it's not the largest opioid settlement in the works. The drug distribution companies AmerisourceBergen, Cardinal Health and McKesson, plus drugmaker Johnson & Johnson, have agreed to a settlement worth $26 billion over time. The deal relies on having a critical mass of local governments surrender their right to sue and sign on.

Facing thousands of lawsuits from state and local governments, unions, hospitals and others, Purdue filed for bankruptcy protection in 2019 as part of an effort to settle the cases. After negotiations and mediation, it reached a deal supported by the overwhelming majority of state and local governments, as well as individuals with claims who voted on it.

The plan calls for Sackler family members to give up ownership of Purdue. The transformed company would continue to make OxyContin, but with profits going to fight the opioid crisis. It also would try to develop low- or no-cost drugs to reverse overdoses and treat addictions. Sackler family members would contribute $4.5 billion over time in cash and charitable assets.

Most of the money would flow to government entities, which would be obligated to use it to fight the crisis and not just to fill their budgets.

“The most important thing to me is that in the plan, every single penny has to be used for the epidemic,” Juaire said.

Because of the advocacy of Juaire and other representatives of victims, a portion of the settlement — $750 million — would go to individual victims and their families. Payments were expected to range from $3,500 to $48,000. That set the Purdue deal apart from other large opioid settlements, where money for individual victims is not included.

But the deal came with one catch that angered many advocates, state attorneys general and others: The Sacklers would be protected from all current and future civil lawsuits over the toll of opioids.

Under a 2020 settlement with the U.S. Department of Justice, the company pleaded guilty to criminal charges in a deal that would waive most of their $8.3 billion in penalties and forfeitures as long as it entered a settlement that would use money to fight the opioid crisis. Members of the Sackler family agreed separately to pay $225 million to settle federal civil claims. There are no indications that criminal charges could emerge against family members, though some activists are pressing officials to file them.

Eight states and the U.S. Bankruptcy Trustee, a part of the Department of Justice, objected to the bankruptcy settlement and appealed after a U.S. Bankruptcy Court judge accepted the deal in September.

Their arguments swayed Judge McMahon. In her ruling, she said bankruptcy law does not give judges the power to accept deals that protect people who are not themselves filing for bankruptcy protection if some parties in the case don't agree.

The decision “puts a fine point on the idea that there cannot be two systems of justice in this country,” one for the wealthy and one for everyone else," Washington state Attorney General Bob Ferguson said in an interview Friday.

Purdue said it would appeal but that it also would keep trying to find a settlement all parties would accept.

McMahon anticipated an appeal in her ruling: “This opinion will not be the last word on the subject, nor should it be.” She said the issue of third-party releases has hovered over bankruptcy law for decades, with federal circuit courts disagreeing about whether they can be granted.

The appeal will go to the New York-based U.S. 2nd Circuit Court of Appeals. It's expected that whichever side loses will ask the U.S. Supreme Court to weigh in.

Congress also has considered legislation that would prohibit the kind of protections granted to Sackler family members, but the bill has stalled.

Representatives of the Sackler family have said in court, depositions and congressional hearings that they have not done anything improper and are not responsible for the opioid epidemic. They have not commented on Thursday's ruling.

The Department of Justice, under different leadership than it was 13 months ago when Purdue pleaded guilty, praised McMahon's decision.

“The bankruptcy court did not have the authority to deprive victims of the opioid crisis of their right to sue the Sackler family," U.S. Attorney General Merrick Garland said in a statement.

https://abcnews.go.com/amp/Health/w...courts-rejection-purdue-opioids-deal-81821579

 

[Arkain2K]

 

[DoctorNick]

I am shocked and so very happy about this. Sooner than later this massive problem will become a thing of the past.

 

[Arkain2K]

 

[Toastytoy]

These fucking pricks are so evil and full of greed. They knew what they were doing when they convinced the medical community they oxy was non addictive, and they rolled in billions of dollars knowing the whole time that their creation was killing people. Now they want to run and hide under bankruptcy. Fuck them. They went from making a few billion to 31 billion per year because of OxyContin alone. Now every state is suing the fuck out of them, and it is still not even touching what they made in one year. WV was and is hit so hard by these fuckers and settled for ten million, and they were among the first(first time wv was ever the first to do anything) and now states are getting $270 million. WV got screwed yet again.

I am big on personal responsibility in such matters; but when they purposely lied about the addictive properties, which they knew from the start and counted and banked on it; they showed what evil fucks they are. So that whole personal responsibility comes back to them. Some of these twat waffles and douche canoes plead guilty for their crimes, but got a slap on the wrist. What needs to happen is these fucks need to be force fed their own drug and then cut off. And do this repeatedly so they can go through withdrawal over and over.

dude if you dont know that heroin is addictive or what an opiate is than im sorry but that's pretty naive.

 

[nhbbear]

dude if you dont know that heroin is addictive or what an opiate is than im sorry but that's pretty naive.

I am talking in the 90s-2000. My dad was a doctor and we would always go on retreats with the pharmaceutical companies paid for by them(before it was outlawed) where they would give presentations on their newest drugs while the family went skiing(we always went to Colorado and skied while he was in meetings) and I remember my dad coming back from one such meeting and said that they were pushing a new pain medication that they claimed was non addictive and he said he would believe that when he saw it.

 

[rearnakedchoke]

Bankrupt and lock these guys up. Then go after the doctors who prescribed these drugs over and over.

 

[Arkain2K]

Purdue Pharma seeks to appeal U.S. ruling that overturned its opioid settlement
By Krystal Hu | Dec 31, 2021​

(Reuters) - Purdue Pharma is seeking to appeal to the 2nd U.S. Circuit Court of Appeals a judge's decision to unravel its restructuring plan that would have insulated its owners from liability in civil opioid-related cases, according to a court filing late on Thursday.

The appeal came after U.S. Bankruptcy Judge Robert Drain in White Plains, New York, extended temporary protections until Feb. 1 against opioid-related litigation for the Sackler family members who own Purdue Pharma, giving Purdue and the Sacklers time to pursue the appeal.

The decision Purdue seeks to appeal was made on Dec. 16, when U.S. District Judge Colleen McMahon overturned Drain's ruling that freed the billionaire Sackler family from liability in civil litigation over opioids in exchange for a $4.5 billion payment.

In the court's decision on the OxyContin maker’s bankruptcy settlement, McMahon found the bankruptcy court did not have authority to grant the release and had asked the appeals court to address whether such releases were legally acceptable.

Purdue argues in the Thursday filing that the Bankruptcy Code permits non-consensual third-party release in its case. It also says the U.S. Trustee, which appealed Drain’s approval of the plan, does not oppose its ability appeal to the 2nd Circuit.

Purdue filed for bankruptcy in September 2019 amid 3,000 lawsuits accusing the company and Sackler family members of contributing to a public health crisis that has claimed the lives of about 500,000 people since 1999.

https://finance.yahoo.com/news/purdue-pharma-seeks-appeal-u-155641981.html

 

[Broke Lester]

Bankrupt and lock these guys up. Then go after the doctors who prescribed these drugs over and over.

It's better to just take everything they own and let them free, not being able to live their former lifestyle is a punishment far greater than jail.

 

[Arkain2K]

Judge orders mediation for Purdue, Sacklers over opioid settlement
By Maria Chutchian | January 3, 2022

Jan 3 (Reuters) - A U.S. judge on Monday ordered mediation in the Purdue Pharma bankruptcy, calling for the company, the Sackler family members that own it and nine states to determine whether they can reach a new opioid litigation settlement by Jan. 14.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York, issued an order directing the parties to negotiate changes to a previous deal rejected by another judge in December that provided the Sacklers protection against future opioid litigation. U.S. Bankruptcy Judge Shelley Chapman is serving as the mediator. read more

If they do not reach agreement by then, the mediation will end and an appeal by Purdue against the deal's rejection will continue.

Chapman presided over prior mediation that led to the earlier settlement, under which the Sacklers said they would contribute $4.5 billion to Purdue’s reorganization plan, which directs money toward opioid abatement programs. In exchange, the Sacklers, who have denied wrongdoing, received legal protections known as nondebtor releases.

Purdue, the maker of OxyContin, filed for bankruptcy in 2019 in the face of thousands of lawsuits accusing it and the Sacklers of fueling the opioid epidemic through deceptive marketing.

Representatives for the Sacklers and Purdue did not immediately respond to a request for comment, nor did a lawyer representing most of the states that opposed the prior deal.

U.S. District Judge Colleen McMahon on Dec. 16 reversed Drain's approval of Purdue's reorganization plan and the underlying settlement.

Following McMahon's ruling, Drain urged the parties to negotiate in good faith.

Purdue has taken steps to appeal McMahon's decision to the 2nd U.S. Circuit Court of Appeals.

https://www.reuters.com/markets/us/...e-sacklers-over-opioid-settlement-2022-01-03/

 

[12ga.]

Why arnt they in the clink? ~600K dead is almost genocide numbers.

 

[Arkain2K]

Mediator: Sacklers willing to pay more in Purdue settlement​

By GEOFF MULVIHILLFebruary 18, 2022

Members of the Sackler family who own OxyContin maker Purdue Pharma are willing to kick in more money — up to $6 billion total — to settle thousands of lawsuits over the toll of opioids as the company tries to work out a deal with state attorneys general who torpedoed an earlier settlement.

The offer of extra cash was detailed in a report filed Friday in U.S. Bankruptcy Court by a federal mediator who asked the court to let her have until the end of the month to broker a new settlement.

Under the latest proposal, the Sacklers would contribute between $5.5 billion and $6 billion, an increase from the $4.3 billion they had agreed to in the original bankruptcy settlement. The last of the money would not be paid out for 18 years, and the exact amount would depend on how much the family would make from selling its international drug companies.

The additional money would have to be used to combat a crisis that has been linked to more than 500,000 deaths in the U.S. over the past two decades. Part of it would be controlled by the eight states, joined by the District of Columbia, that objected to the original settlement last year even when other states agreed to it.

In exchange, members of the family would be shielded from current and future opioid-related lawsuits. That protection was contained in the original bankruptcy settlement but prompted the objecting states to file an appeal that ultimately succeeded, leading to the current round of negotiations.

The objecting states said the earlier amount of $4.5 billion did not go far enough to hold accountable members of a family that made billions from the sale of OxyContin.

Advocates for opioid victims and their families were concerned about where the additional money would go. Ryan Hampton, an advocate for people with opioid use disorder, said it did not appear that the $750 million set aside for payments to victims of the crisis and their families would increase under the latest proposal.

“The government’s pot will continue to get larger as additional settlement negotiations may continue, yet there’s no increase for direct payments to families and survivors,” Hampton said. “It’s dead wrong and unjust.”

According to the report by the mediator, U.S. Bankruptcy Court Judge Shelley Chapman, any new deal would be contingent on having all the holdout states and the District of Columbia agree to it. She said a “supermajority” have agreed so far, but did not list which are still holding out.

State attorneys general offices contacted Friday by The Associated Press declined comment or did not respond. A spokeswoman for one branch of the Sackler family also declined to comment, while a representative for the other side did not respond.

In a statement, Purdue said it remains “focused on achieving our goal of providing urgently needed funds to the American people for opioid crisis abatement.”

Earlier this week, U.S. Bankruptcy Court Judge Robert Drain agreed to keep any opioid lawsuits against Purdue and the Sacklers on hold through March 3 to buy more time for reaching a settlement.

https://apnews.com/article/business-health-lawsuits-opioids-fc1e5a7436e6afcf81ffdb1fbc72d622

 

[fungi]

I believe that our Universe is just.
Sooner or later we all get our dues.
Some later than sooner, but we do.
Well, imho.

Sack the Sacklers!
"Dopesick" was awesome!