Sackler Family Faces Legal Action As Purdue Pharma Creditors Push For Accountability

Purdue Pharma’s creditors are reportedly seeking permission from a U.S. bankruptcy court to sue the company’s wealthy owners, aiming to use litigation as both a negotiating tool and a fallback option as the OxyContin maker re-enters settlement talks.

This request follows a U.S. Supreme Court decision last month that overturned a previous bankruptcy deal, ruling that Purdue’s settlement cannot protect the Sackler family members from lawsuits over their role in the opioid epidemic.

Purdue has been in bankruptcy for nearly five years, attempting to reach a comprehensive settlement of legal claims from state and local governments, families of opioid overdose victims, and others.

The company is scheduled to appear in court on Tuesday, marking its first appearance since the Supreme Court’s June 27 ruling.

Related: Purdue Pharma Bankruptcy Plan Rejected by Supreme Court, Billionaire Sacklers to Face Lawsuits.

Purdue Pharma is revisiting negotiations to achieve a comprehensive settlement of lawsuits against it and its owners, the Sackler family, accused of deceptive marketing practices that contributed to the U.S. opioid crisis.

Reuters highlighted the court-appointed committee of Purdue creditors, which includes individuals harmed by the opioid crisis as well as insurers and companies with opioid claims, emphasized in a court filing in White Plains, New York, the necessity to sue to ensure the Sacklers are held accountable for their alleged misconduct.

The committee expressed its intention to engage in mediation and settlement talks with Purdue and the Sacklers before pursuing litigation.

Citing a spokesperson for the Sackler family, Reuters noted the committee’s filing contained factual errors and hindered efforts toward a resolution.

The committee supported Purdue’s previous bankruptcy settlement as an efficient way to compensate opioid crisis victims but argued that the Sacklers’ legal claims are worth more than the $6 billion the family agreed to pay.

The committee requested “derivative” standing to pursue Purdue’s legal claims against the Sacklers, citing Purdue’s substantial claims, including accusations that the Sacklers drained over $11 billion from the company.

The Sackler family disputed this figure, claiming that half of the withdrawn amount was used for tax payments.

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• UnitedHealth’s OptumRx Settles Opioid Prescription Claims for $20M.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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