Federal judges are asked to pave way for Purdue Pharma deal

Lawyers for Purdue Pharma, victims of the opioid crisis and governments have asked a federal appeals panel to pave the way for a settlement of claims against the OxyContin maker

Lawyers for OxyContin maker Purdue Pharma and many of those who had claims against the company over the toll of opioids joined together Friday to urge a federal judicial panel to advance a plan that would settle lawsuits across the country.

The legal question facing the judges from the 2nd U.S. Circuit Court of Appeals in New York: Does a bankruptcy judge have the authority to grant members of the Sackler family who own the company protection from civil lawsuits over the toll of opioids?

Sackler family members have insisted on the legal shield in exchange for providing the money behind the proposed settlement. And as their offer was boosted over more than two years of negotiations and mediation, most of the parties came to support the deal — including all the states.

But the U.S. Bankruptcy Trustee's Office, an arm of the Justice Department, has continued pushing back, asserting it's improper to provide a legal shield for members of the wealthy family who have not themselves filed for bankruptcy protection.