US Court Grants Purdue Pharma More Time For Settlement Talks Related To Opioid Crisis

Purdue Pharma received a critical extension from U.S. Bankruptcy Judge Sean Lane for ongoing mediation efforts regarding its OxyContin litigation.

The company received an additional 18 days to negotiate a comprehensive settlement.

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

The 5-4 decision marks a victory for a minority of opioid victims who voted against the settlement to continue pressing lawsuits against the Sackler family.

Also Read: Sackler Family Faces Legal Action As Purdue Pharma Creditors Push For Accountability.

The extension is seen as a crucial step for Purdue to amend its approach after nearly five years of bankruptcy proceedings, which were complicated further by the Supreme Court’s stance on non-debtor legal claim releases.

With most U.S. states and various local governments backing the extension, the additional time is aimed at preserving as much of Purdue’s initial settlement plan as possible, Reuters noted, citing Purdue’s attorney.

However, some opposition remains, notably from Maryland and Nassau County, New York, which criticize the ongoing delays as potentially prolonging litigation against the Sacklers, who have been accused of contributing to the opioid crisis through deceptive marketing practices.

In July, Purdue Pharma obtained a 60-day suspension on lawsuits against the Sackler family. This marked 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, to facilitate a renegotiated settlement addressing lawsuits.

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

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