As the case against Purdue Pharma, manufacturer of OxyContin rolls on, U.S. District Judge Colleen McMahon has allowed an appeal against her previous ruling that rejected legal protections for the Sackler family, which formed a major part of the company's proposed bankruptcy reorganisation plan.
Back in December she said that the New York bankruptcy court that approved the proposed $4.5bn settlement did not have authority to grant the Sackler's the legal protection from future opioid litigation.
Purdue Pharma and the Sackler family have been accused of fuelling the Opioid epidemic, with thousands of lawsuits citing deceptive marketing of their products. The Sackler Family have denied any wrongdoing.
According to the CDC (Centers for Disease Control and Prevention) figures below, it is estimate that Opioid overdoses have claimed the lives of nearly 500,000 Americans since 1999.
https://www.cdc.gov/opioids/data/analysis-resources.html
U.S. District Judge Colleen McMahon's ruling means Purdue will have another shot at keeping intact a $4.5 billion opioid litigation settlement at the heart of the company's plan. She gave Purdue until Jan. 17 to file the appeal to the New York-based 2nd U.S. Circuit Court of Appeals. Judge McMahon reversed a bankruptcy judge’s order approving the deal in December. The settlement provides so-called nondebtor releases that shield the Sacklers against future opioid-related lawsuits. The Sacklers, who have denied wrongdoing, contributed $4.5 billion to the settlement in exchange for the releases. Under Purdue’s reorganization plan, settlement funds would be directed toward opioid abatement programs.
unknownx500
