Purdue Pharma Secures 60-Day Lawsuit Freeze Amid New Bankruptcy Talks Over Opioid Crisis Lawsuits

Purdue Pharma obtained a 60-day suspension on lawsuits against its owners, the Sackler family. This marks the company’s first court appearance since a Supreme Court ruling disrupted its bankruptcy settlement.

U.S. Bankruptcy Judge Sean Lane granted the injunction during a hearing in White Plains, New York, aiming to facilitate a renegotiated settlement addressing lawsuits that blame Purdue’s painkiller OxyContin for the U.S. opioid crisis.

In June, the Supreme Court rejected a bankruptcy plan for OxyContin-maker Purdue Pharma that would have allocated billions from the wealthy Sackler family to combat opioid addiction, and the Sacklers would have been shielded from civil lawsuits related to their alleged role in the opioid crisis.

The company had pleaded guilty to misbranding and fraud charges in 2007 and 2020 related to its OxyContin marketing. Since 2019, Purdue’s bankruptcy has halted these lawsuits, extending legal protection to the Sacklers.

Reuters report, citing Purdue’s attorney, Marshall Huebner, emphasized that protecting the Sacklers during the 60-day negotiating period is crucial for reaching a new settlement and directing funds toward opioid overdose prevention and addiction treatment.

Several stakeholders expressed optimism about settling but insisted that mediation should not extend beyond the proposed 60-day period.

Judge Lane appointed two mediators to facilitate the settlement talks: retired bankruptcy judge Shelley Chapman, who previously brokered a deal involving a $6 billion payment from the Sacklers, and Eric Green.

If mediation fails, Purdue proposes that a court-appointed committee representing its creditors be allowed to sue the Sacklers over allegations of draining over $11 billion from the company and other claims.

Despite previous broad support for Purdue’s bankruptcy settlement from attorneys general across all 50 states, local governments and a majority of individual opioid victims who have suffered multiple overdoses argue that individuals have been marginalized throughout the bankruptcy process.

Read Next:

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

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

Photo via Shutterstock