Purdue Pharma Can Protect Sackler Owners in Opioid Bankruptcy, Court Rules
NEW YORK—Bankrupt OxyContin maker Purdue Pharma can shield its owners, members of the wealthy Sackler family, from opioid lawsuits in exchange for a $6 billion contribution to the company’s broader bankruptcy settlement, a U.S. appeals court ruled on Tuesday.
The New York-based 2nd U.S. Circuit Court of Appeals said that U.S. bankruptcy law allows legal protections for non-bankrupt parties, like the Sacklers, in extraordinary circumstances.
In a majority opinion written by 2nd Circuit Judge Eunice Lee, the court ruled that the legal claims against Purdue were inextricably linked to claims against its owners, and allowing lawsuits to continue targeting the Sacklers would undermine Purdue’s efforts to reach a bankruptcy settlement….