Justice Department Opposes $ 4.5 Billion Purdue Pharma Bankruptcy Settlement

Justice Department Fights Settlement of $ 4.5 Billion Purdue Pharma Bankruptcy That Will Protect Sackler Family From Opioid Crisis Lawsuits

  • Sacklers demand settlement over sales of Oxycontin that sparked opioid crisis
  • Deal sees them pay $ 4.5 billion and sell drugmaker Purdue, but avoid future lawsuits
  • Bankruptcy judge approved deal, but Justice Department defies it
  • Several state attorneys also oppose it, saying it helps the family off the hook.










The Justice Department challenged a bankruptcy deal that would see the Sackler family pay $ 4.5 billion and sell drugmaker Purdue – but would mean it could no longer be sued for the drug that triggered the crisis. opioids in the United States.

The settlement was approved earlier this month by bankruptcy judge Robert Drain and has the support of the Sackler family and some groups of victims.

But the justice ministry has now called for the regulation to be suspended so that it can challenge the deal in higher courts, calling it “unconstitutional”.

Washington, Maryland, Oregon and Connecticut state prosecutors also opposed the deal, saying it allows the Sacklers to “get out of the woods.”

The Justice Department challenged a deal that would see the Sackler family – the makers of Oxycontin – pay $ 4.5 billion and sell drug company Purdue, but avoid any future lawsuits

In a court file released Wednesday, Department of Justice administrator William Harrington says the deal fails to capture the national drug crisis that has caused more than 500,000 overdose deaths in the United States. United for the past 20 years.

The deal “harms both the public and countless people by extinguishing the rights opioid victims hold against thousands of members of the Sackler family and associated parties.”

If the settlement is allowed to continue, there will be no “full account” of the roles of these individuals and groups in the “opioid disaster,” the government says.

Mr Harrington argues that the money that would be made from future lawsuits against the Sacklers is a form of property that is constitutionally protected and cannot be taken away without giving people their day in court.

Amid an avalanche of litigation, Purdue pleaded guilty last year to three criminal charges for its aggressive campaign to increase sales of OxyContin, a highly addictive prescription pain reliever.

Under the terms of the deal, the company will be sold by 2024 to be replaced by a new entity managed by a trust, and its involvement in the sale of opioid products will be limited.

Purdue will also need to create a repository for tens of millions of documents detailing its sales and marketing practices.

The Sacklers hailed the deal, saying it avoided disputes that could take years to resolve, though critics including Washington State Attorney General Bob Ferguson have argued it leaves them families “get out of the woods”.

Like many American billionaires, the Sacklers made donations to prestigious institutions like the Met Museum in New York. Many institutions now prohibit their donations.

The family’s fortunes declined amid the crisis, but were still estimated at around $ 10.8 billion at the end of last year, according to Forbes, who said much of that wealth came from Purdue.

Several state attorneys, including William Tong of Connecticut, are also contesting the deal, saying it allows the Sackler family to get off the hook.

Several state attorneys, including William Tong of Connecticut, are also contesting the deal, saying it gets the Sackler family off the hook.


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Estelle D. Eden

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