The billionaire Sackler family, owners of OxyContin maker Purdue Pharma, asked a New York bankruptcy court to push back an April 8 stay of legal action against them. They argued that doing so is critical to achieving a global settlement that would resolve about 2,000 lawsuits brought by states and local governments seeking compensation for overdose deaths and economic damages caused by Purdue’s involvement in the national opioid epidemic, Law360 reported.
The settlement promises to provide billions of dollars in opioid treatments and programs to communities across the country. Under the terms, Purdue filed for Chapter 11 bankruptcy protection on Sept. 15, and agreed to turn the company into a public beneficiary trust owned by the plaintiffs with profits going toward the opioid crisis. The family also agreed to pay at least $3 billion of their own money.
That arrangement protected the company from litigation until April 8. Earlier this month, Purdue asked for a 180-day extension, which the states quickly rejected saying that the extension would give the Sacklers “the benefits of bankruptcy without the corresponding responsibilities.”
Lawyers in Beasley Allen’s Mass Torts Section are representing local governments holding opioid companies accountable for overdose deaths and economic damages in their communities caused by the opioid crisis. Attorneys are also investigating cases of serious injuries and illness – including addiction and overdose – related to opioid use and abuse, as well as cases of Neonatal Abstinence Syndrome (NAS) in babies born to mothers addicted to opioids. For more information, contact Melissa Prickett or Liz Eiland.