USA

The Justice Department is trying to thwart Purdue Pharma bankruptcy transactions: NPR

Purdue Pharma has filed for bankruptcy with plans to exceed $ 10 billion to resolve allegations that fostered an opioid epidemic in the United States by illegally promoting the sale of addictive OxyContin painkillers. The company’s headquarters in Stamford, Connecticut will be listed here in 2019.

Victor J. Blue / Bloomberg / Getty Images


Hide captions

Switch captions

Victor J. Blue / Bloomberg / Getty Images

Purdue Pharma has filed for bankruptcy with plans to exceed $ 10 billion to resolve allegations that fostered an opioid epidemic in the United States by illegally promoting the sale of addictive OxyContin painkillers. The company’s headquarters in Stamford, Connecticut will be listed here in 2019.

Victor J. Blue / Bloomberg / Getty Images

A division of the Justice Department, which oversees the federal bankruptcy system, filed an appeal late Wednesday seeking to thwart the controversial Purdue Pharma bankruptcy program.

William Harrington, the US Trustee of the Justice Department, has also submitted a document requesting a “quick stay” to prevent the settlement from being implemented.

transaction, Approved September 1st by Judge Robert Drain, Gave members of the Sackler family, who own a pharmaceutical company, a radical exemption from opioid proceedings.

The non-bankrupt Suckler was granted exemption from liability after agreeing to donate approximately $ 4.3 billion of private property to the transaction.

Proponents of the settlement, including most state attorney generals, say they will fund costly proceedings while funding drug treatment programs for the next decade.

However, through a two-week bankruptcy trial and in court documents, the DOJ repeatedly blasted the release from liability given to Suckler as “illegal” and “unconstitutional.”

In the previous filingHarrington said that Suckler and his associates used the bankruptcy system to “create one of the most serious public health crises ever experienced in the United States and perpetuate it for the benefit of fraud. He accused him of avoiding liability for “the allegations.”

The introduction of Oxcontin in the 1990s is widely seen as one of the spurs of the opioid epidemic that killed more than 500,000 people in the United States.

Suckler, who earned more than $ 10 billion from opioid sales, They have repeatedly said they didn’t do anything wrong I acted ethically.

In a new court document filed Wednesday, DOJ lawyers said they were concerned that some provisions of Purdue Pharma’s bankruptcy plan could be swiftly implemented and could complicate the appeal. rice field.

“When seeking a stay pending an appeal, the purpose of the US trustee is to maintain the status quo for the life of the appeal,” the document said.

The DOJ requested a prompt hearing within the next two weeks. Maryland, Washington, and Washington, DC have also appealed.

When approving Purdue Pharma’s bankruptcy earlier this month, Judge Robert Drain described it as the best solution to a case involving more than 600,000 parties allegedly damaged by Oxycontin.

“This is a bitter result,” Drain said in a September 1 decision. “I believe at least some Suckler parties are responsible for them. [opioid OxyContin] Claim. … I would have expected a higher reconciliation. “

Purdue Pharma has twice pleaded guilty to federal crimes related to OxyContin’s marketing. Suckler, who headed the company, says he did nothing criminal or unethical.

Under this arrangement, if it survives the appeal, Suckler will not admit cheating again.

The Justice Department is trying to thwart Purdue Pharma bankruptcy transactions: NPR

Source link The Justice Department is trying to thwart Purdue Pharma bankruptcy transactions: NPR

Back to top button