DOJ Appeals Settlement That Would Shield Sacklers From Opioid Liability
Deeming it "unlawful," a watchdog within the Department of Justice moved to block a bankruptcy deal that includes protections for Purdue Pharma from future lawsuits over its role in the opioid epidemic.
The New York Times:
U.S. Seeks To Block Bankruptcy Plan That Would Free Sacklers From Opioid Claims
The Justice Department moved on Thursday to block a bankruptcy plan that grants broad legal immunity to the pharmaceutical company Purdue Pharma, whose drug OxyContin has been at the heart of the nation’s opioid epidemic. William K. Harrington, the U.S. trustee for the Justice Department, filed a motion in federal court to halt confirmation of the settlement while the department appeals the judge’s decision to approve the deal. (Benner, 9/16)
The Wall Street Journal:
Justice Department Fights Settlement That Would Shield Sacklers From Opioid Lawsuits
U.S. Trustee William Harrington, who is part of the Justice Department unit monitoring the nation’s bankruptcy courts, said in a Wednesday court filing that U.S. Bankruptcy Judge Robert Drain was wrong to approve the settlement earlier this month and said his ruling authorizing the deal between Purdue and its Sackler family owners will likely be overturned by a higher court. The Justice Department challenge represents the next stage in the fight over the settlement, which will likely move to an influential federal appeals court that oversees bankruptcy courts in New York, where Purdue filed for chapter 11. Mr. Harrington is joining attorneys general in Washington, Connecticut, Maryland and the District of Columbia who have said they also intend to challenge the settlement in the higher courts. (Randles, 9/16)
NPR:
The DOJ Moves To Block The Purdue Pharma Bankruptcy Deal That Shields The Sacklers
The Sacklers, who are not bankrupt, were granted releases from liability after agreeing to contribute roughly $4.3 billion of their private wealth to the deal. Supporters of the settlement, including most state attorneys general, said it will avoid costly litigation while funding drug treatment programs over the next decade. But throughout a two-week bankruptcy trial, and in court documents, the Justice Department repeatedly blasted releases from liability granted to the Sacklers as "unlawful" and "unconstitutional." (Mann, 9/16)
In other news about the opioid crisis —
WSB-TV Channel 2 - Atlanta:
Georgia Doctor, 2 Medical Workers Arrested In ‘Massive’ Pill Mill, Feds Say
Three medical professionals from Georgia are facing dozens of charges in what federal officials call a massive pill mill operation. The indictment released Wednesday details the alleged operation in which “massive quantities” of controlled substances, including highly addictive opioids, were to be distributed in Coffee County. The charges include one count of distribution and dispensation of controlled substances resulting in death by Dr. Wallace Steven Anderson, 67, of Douglas. The charge carries a minimum statutory sentence of 20 years in prison, up to life. There is no parole in the federal system. (9/16)
