Although the U.S. Bankruptcy Court approved the OxyContin maker’s reorganization plan that freed the Sacklers from greater financial accountability and shielded them from additional lawsuits, the Department of Justice moved to block the Purdue Pharma bankruptcy deal.
A U.S. judge said on Sept. 1 he would approve OxyContin maker Purdue Pharma LP’s bankruptcy reorganization plan, clearing a path to resolve thousands of opioid lawsuits and shielding the company’s wealthy Sackler family owners from future opioid litigation.
Purdue Pharma LP said on Tuesday that creditors voted in favor of the company’s reorganization plan that would provide billions of dollars to the governments that sued the OxyContin maker for its role in the U.S. opioid crisis.
Fifteen more states reached an agreement with Purdue Pharma LP and members of its wealthy Sackler family owners that moved the OxyContin maker a step closer to resolving widespread opioid litigation and exiting bankruptcy protection.
Massachusetts sued a unit of French advertising company Publicis Groupe SA on May 6, accusing it of fueling the U.S. opioid crisis by using unfair and deceptive marketing to help drugmaker Purdue Pharma sell more OxyContin.
Purdue Pharma LP filed a bankruptcy plan on March 15 that would resolve thousands of opioid lawsuits by restructuring the OxyContin maker into an entity that would steer profits to plaintiffs and require the company’s Sackler family owners to contribute nearly $4.3 billion to the settlement.
Purdue Pharma LP pleaded guilty to criminal charges over the handling of the company’s addictive prescription painkiller OxyContin, capping a deal with federal prosecutors to resolve an investigation into the drugmaker’s role in the U.S. opioid crisis.