Judge rejects Purdue Pharma’s sweeping opioid settlement
ABC News
A federal judge has rejected OxyContin maker Purdue Pharma’s sweeping deal to settle thousands of lawsuits over the toll of opioids
NEW YORK -- A federal judge rejected OxyContin maker Purdue Pharma’s bankruptcy settlement of thousands of lawsuits over the opioid epidemic Thursday because of a provision that would protect members of the Sackler family from facing litigation of their own.
U.S. District Judge Colleen McMahon in New York found that federal bankruptcy law does not give the bankruptcy judge who had accepted the plan the authority to grant that kind of release for people who are not declaring bankruptcy themselves.
In a statement Thursday night, the company said that it would appeal the ruling and at the same time try to forge another plan that its creditors will agree to.
Purdue said the ruling will not hurt the company's operations, but it will make it harder for company and Sackler money to be used to fight the opioid crisis as the legal fight continues.
