Judge will approve Purdue Pharma bankruptcy that shields Sacklers from opioid lawsuits

OxyContin maker Purdue Pharma LP won court approval of a $4.5 billion bankruptcy settlement that shields its owners, Purdue Pharma’s bankruptcy settlement, worth more than $10 billion on paper .The settlement terms have been harshly criticized for shielding the Sacklers. They are receiving protections that are typically given to companies that emerge from bankruptcy, but not necessarily to owners who, like the Sacklers,

Members of the Sackler family, from lawsuits accusing them of contributing to the nation’s opioid epidemic in exchange for providing funding to combat the crisis .
The plan, which Purdue values at more than $10 billion, dissolves the drugmaker and shifts assets to a new company not controlled by Sackler family members. The new company will be owned by a trust run to combat the opioid epidemic.The Purdue bankruptcy plan includes a $4.5 billion contribution from Sackler family members .

Purdue filed for bankruptcy in September 2019 in the face of 3,000 lawsuits against the company and Sackler family for contributing to a public health crisis that has claimed the lives of about 500,000 people since 1999.

CHIEF CRITIC

“The Sacklers are not bankrupt, and they should not be allowed to manipulate bankruptcy laws to evade justice and protect their blood money,” William Tong, Connecticut’s attorney general, said in a statement responding to the ruling

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