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Sackler Purdue Pharma Bankruptcy Class Action Lawsuit Overview:
- Who: A US bankruptcy judge is set to approve Purdue Pharma’s bankruptcy plan.
- Why: The plan would protect the company, which makes OxyContin, and Sackler family from class action lawsuits regarding the US opioid crisis.
- Where: The class action lawsuit was filed in New York bankruptcy court.
A bankruptcy judge said he will approve Purdue Pharma LP’s bankruptcy reorganization plan, which would protect Purdue and the Sackler family owners from current and future opioid class action lawsuits.
The bankruptcy plan will dissolve Purdue Pharma LP and shift assets to a new company owned by a trust — not involving the Sacklers — designed to combat the opioid epidemic. Purdue filed for bankruptcy in September 2019 while facing 3,000 lawsuits against the company and the Sackler family for their alleged role in the opioid crisis that caused about 500,000 deaths since 1999, reports Reuters.
Even though the Sackler family denies allegations of their involvement with the opioid crisis, Purdue Pharma pled guilty to criminal charges in November for its handling of opioids, namely OxyContin.
Purdue Pharma Bankruptcy Approval Proves Controversial
Judge Robert Drain, hearing the case in White Plains, New York, bankruptcy court, has said the plan will move forward with small changes, but he agreed to legal releases in the plan that will shield Purdue Pharma and Sackler family members from future opioid lawsuits. Already 95 percent of Purdue’s creditors voted in support of the plan, opening the door for a bankruptcy judge’s approval.
However, the plan’s legal releases face opposition from Congressional Democrats, several state attorneys general, and the federal agency that oversees bankruptcies.
The plan is also criticized for failing to include input from those harmed by the opioid crisis.
What do you think of the judge’s approval to prevent opioid lawsuits against Purdue Pharma and the Sackler family? Sound off in the comments section below
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Read About More Class Action Lawsuits & Class Action Settlements:
- Johnson & Johnson, Other Major Drug Distributors Poised to Announce $26B Global Opioid Settlement
- Pfizer Reaches a $345M Settlement With EpiPen Buyers Following Antitrust Allegations
- OxyContin-Maker Purdue Inks $4.5B Opioid Epidemic Settlement With 15 States
- Johnson & Johnson Will Pay $230M to Settle Opioid Marketing Claims, Won’t Face Trial
