Purdue Pharma Bankruptcy Plan Slammed By Justice Department
There are "fundamental concerns" about Purdue Pharma's potentially unconstitutional opioid epidemic settlement plans in the Justice Department, with U.S. Trustee William Harrington even labelling the Sackler family liability releases from future lawsuits as "impermissible."
ABC News:
Justice Department Has 'Concerns' About Purdue Pharma Bankruptcy Exit Plan
The Justice Department said Monday it has "fundamental concerns" with Purdue Pharma’s plan to exit Chapter 11 bankruptcy protection. Purdue filed for Chapter 11 protection in 2019 as it faced thousands of lawsuits across the country over its aggressive marketing of OxyContin and other opioid products. (Katersky, 7/19)
NPR:
Justice Department Blasts Purdue Pharma's Bankruptcy Plan
The U.S. Justice Department is condemning a proposed bankruptcy settlement for Purdue Pharma, the maker of Oxycontin. In court filings Monday, two divisions of the DOJ described the plan as fatally flawed. The DOJ's U.S. Trustee program, which serves as a national watchdog over the federal bankruptcy system, said the deal is unconstitutional and illegal. In a separate brief, the office of the U.S. Attorney for the Southern District of New York said the plan violated the "constitutional right to due process" for those with potential opioid claims. (Mann, 7/19)
The Washington Post:
$21 Billion Settlement With Opioid Distributors Expected To Be Announced This Week
After months of gridlock and years of litigation, thousands of communities suing the nation’s three largest opioid distributors will announce this week they plan to move forward with a $21 billion global settlement that would resolve ongoing and future lawsuits filed by states, cities, counties, Native American tribes and other jurisdictions, according to three people familiar with the negotiations. The deal could set aside funds for governments as soon as the end of September, according to those familiar with the negotiations, and release McKesson Corp., Cardinal Health and AmerisourceBergen from the behemoth, nationwide litigation brought by communities devastated by the opioid crisis. (Kornfield and Bernstein, 7/20)
