• By:bshaffer

Judge Rejects Opioid Lawsuit Settlement for Purdue Pharma’s Sackler Family

A federal judge has rejected Purdue Pharma’s Opioid Lawsuit Settlement agreement releasing the Sackler Family from liability over OxyContin. The agreement had been reached on December 16, 2021, in bankruptcy court and would settle thousands of Opioid lawsuits filed by government agencies and people who had been harmed by OxyContin.

Through the bankruptcy court agreement, the Sackler family was to be allowed to pay $4.5 billion to avoid civil liability over their involvement in the Purdue Pharma-OxyContin Opioid lawsuit battles. On December 16, U.S. District Judge Colleen McMahon overruled the agreement that freed the Sackler family from liability, stating that the bankruptcy court did not have authority to grant the third-party release from liability.

Purdue Bankruptcy Filing

Purdue filed for bankruptcy in September 2019 in the midst of thousands of lawsuits which claimed that the company had pushed prescribing and misrepresented risks of OxyContin, fueling the opioid crisis which has resulted in an estimated 500,000 deaths due to overdose.

The bankruptcy court agreement reached between Purdue and its creditors would allow the company to remain in business, however the Sackler family would give up ownership of the privately owned pharmaceutical company.

Future profits of the company would be used to fight the opioid crisis including the development of new anti-addiction and anti-overdose drugs. In exchange for a $4.5 billion contribution to lawsuit settlements, the Sackler family would be granted protection from current and future civil liability claims.

Settlement Rejected

The settlement was overturned by an appeals court after several states and other organizations objected to the release of the Sackler family. Purdue Pharma has long been a privately owned corporation controlled by various members of the Sackler family. The family has been named as co-defendants in most of the opioid lawsuits against Purdue.

Though opponents showed evidence the family may have been hiding billions of dollars in anticipation of a bankruptcy filing, the reason for the rejection of the settlement by Judge McMahon did not involve wrongdoing by the family. The judge agreed with opponents that the bankruptcy court did not have the authority to release the Sackler family, a third party from future liability decided in other courts.

Over 3,000 lawsuits filed against Purdue and its private owners, members of the Sackler family. Claims mad include accusations that the company and its owners contributed to the deaths of 500,000 people since OxyContin entered the U.S. market in 1999. Purdue and the Sackler family have stated that they will appeal the ruling and will simultaneously try to negotiate another plan which will be acceptable.


Related Post

VIEW all
Teva, Major Pharmacies Found Liable for Actions in Opioid Crisis in New York, Ohio
  • By:bshaffer

Pharmaceutical manufacturing giant, Teva has been found guilty of its role in the opioid crisis in the state of New York. In a separate ruling in Ohio, major pharmacies Walgreens, CVS and Walmart have been found liable for helping to create an oversupply of drugs leading to the opioid epidemic. The findings are in addition to others reached in federal and other state courts. Teva Found Guilty in State of New York Opioid Crisis A New York jury has ruled …

weight loss drug
Weight Loss Drug Removed from Market after Cancer Linked Identified
  • By:bshaffer

Eisai, Inc. voluntarily pulled its weight-loss drug Belviq from the market in February 2020 after it was determined that the drug poses a slightly increased risk of cancer. Despite the recall of the product, Eisai said it did not believe the FDA’s interpretation of the latest round of data on the drug’s safety and stated that it still believes the benefits outweigh the risks. According to the FDA, patients currently using Belviq should stop doing so immediately. They should dispose …

man with heartburn
More Lawsuits Filed against Maker of Popular Heartburn Medication after April FDA Recall
  • By:admin

Additional lawsuits have been filed against the manufacturers of Zantac, a popular medication used to treat heartburn and acid reflux. The new round of legal action comes after the US Food and Drug Administration (FDA) announced on April 1, 2020, that it is requesting manufacturers of the drug to remove it from the market immediately. According to the FDA, the drug puts users at risk for exposure to N-Nitrosodimethylamine (NDMA), a known carcinogen. The use of the medication could result …

Have you been affected by a drug or device listed?