Washington — The Justice Department moved on Thursday to thwart a bankruptcy program in which the drug Oxycontin would give broad legal immunity to pharmaceutical company Purdue Pharma, which was at the heart of the opioid epidemic in the United States.
William K. Harrington, a trustee of the US Department of Justice, has filed a petition in federal court to suspend confirmation of the settlement, and the Department of Justice has appealed the judge’s decision to approve the transaction.
Harrington said the federal government “has a good chance of succeeding in an appeal, and the harm that results from denying a stay outweighs the potential harm of allowing a stay,” the court grants a request for stay. Said it should be.
Controversial Approved this month Judge Robert Drain, a federal judge in White Plains, New York, said, among other things, that the Suckler family, which owns Purdue Pharma, will be liable for future liability in exchange for a $ 4.3 billion monetary contribution from the family’s own property. May be released from.
Mr. Harrington has decided that the Court of Appeals has decided to deprive those who have valid legal claims against Suckler “without their unfamiliar informed consent, proper notice, or opportunity to hear” in his filings. Insisted on.
He also said the federal proceedings were upheld by a previous Supreme Court ruling.
The Justice Department submission is the latest in a long-standing battle to detain the Sackler family to explain the creation, marketing and sale of the highly addictive painkiller Oxycontin.
Some experts say that oxycontin has contributed to the opioid addiction epidemic, killing more than 500,000 people nationwide and still dominating the United States 15 years after the drug was put on the market. Insist.
But Oxycontin made the Sackler family incredibly wealthy. From 2008 to 2017, the family withdrew $ 10.4 billion from Purdue Pharma.
Plaintiffs began to sue Purdue as more people died from opioid use. By the time the company filed for bankruptcy in September 2019, it had faced 2,900 proceedings, more than 600 of which were named Sacklers. Bankruptcy proceedings have suspended these legal claims.
Judge Drain sued the company, including family members, local governments, and hospital systems, and settlement plan after in-depth negotiations between those who could be involved in costly proceedings over the years to come. Approved.
Those who supported the deal, including the majority of states and some plaintiffs, claimed that it would provide the coveted funding for drug treatment programs.
The settlement “guarantees billions of dollars to be spent helping people and communities injured by the opioid crisis,” said Steve Miller, chairman of Purdue’s board of directors. And some members of the Sackler family called the resolution an important step in dealing with the public health crisis.
However, critics said the term unfairly protected Suckler. It gave the company that filed for bankruptcy the family protection normally given, but not to the owner of the company if they did not declare bankruptcy themselves.
The Justice Department and several states have appealed to Judge Drain’s decision.
U.S. is trying to thwart bankruptcy plans to free Suckler from opioid claims
Source link U.S. is trying to thwart bankruptcy plans to free Suckler from opioid claims