Skip to main content

U.S. Judge Overturns Purdue Pharma's Ch.11 Confirmation

U.S. Judge Overturns Purdue Pharma's Ch.11 Confirmation

U.S. Judge Overturns Purdue Pharma's Ch.11 Confirmation

Introduction

Purdue Pharma's Chapter 11 confirmation that would have shielded its owners, the members of the Sackler family from opioid litigations and penalties, has been overturned by a federal judge.

U.S. District Judge Colleen McMahon ruled in a 142-page opinion that the New York bankruptcy court did not have the right to approve the $4.5 billion bankruptcy settlement that would protect the Sacklers from future opioid litigations.

Purdue's chairman responded to the ruling by stating that the company would appeal the decision, and the court's judgment would not affect the operations of the company's stability and ability to produce safe and effective medications to the consumers.

The Sacklers had even insisted on guaranteed legal protections in exchange for a $4.5 billion settlement that it will pay to resolve widespread opioid litigation.

Attorney General Merrick Garland supported the ruling as he feels the bankruptcy court does not have the right to deprive the opioid victims of their rights of suing the company that caused the opioid crisis. Even the Washington State Attorney General Bob Ferguson also praised the decision, who had earlier opposed Purdue's reorganization.

Ferguson even stated that justice would be the same for both ordinary Americans and billionaires and added that he is ready to fight the suit in the Supreme court if necessary.

The drugmaker's reorganization plan has been supported by 95% of the creditors, whereas eight states, Washington, D.C., Seattle and more than 2,600 personal injury claimants have opposed the move.

In September 2019, Purdue filed for bankruptcy considering the 3,000 lawsuits it faced and the opioid crisis that claimed 500,000 lives since 1999. The lawsuits allege that the company downplayed the addiction and overdose risks of opioids and aggressively marketed it for making profits. The company and the family members have denied all the allegations against them.

Comments

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.

Latest News

NC to Get $150M to Boost Opioid Treatment, Recovery

Categories: Opioids

North Carolina will receive an additional $150 million from Purdue Pharma and the Sackler family as part of a national $7.4 billion settlement related to the opioid

SRI Gets FDA OK for High-Dose Naloxone Trial

Categories: Opioids

SRI has received authorization from the U.S. Food and Drug Administration (FDA) to begin Phase 1 clinical trials of a new, high-dose injectable naloxone formulation.

The approval was granted under an Investigational New Drug (IND)…

Spokane County to Get $5M in New Opioid Settlement

Categories: Opioids

Jurisdictions within Spokane County are set to receive nearly $4.7 million as part of a sweeping $7.4 billion nationwide settlement with Purdue Pharma and its owners, the Sackler family.

The agreement addresses the company’s role in fueling…

✍️ FREE—3000 Pages Medical Record Review Trial!                
No Contract. No Risk—Fully Customized, Free!

Only 10 Firms Accepted—Offer Ends June 30!