© Reuters. FILE PHOTO: Bottles of prescription painkiller OxyContin made by Purdue Pharma LP sit on a shelf at an area pharmacy in Provo, Utah, U.S., April 25, 2017. REUTERS/George Frey/File Photograph
By Brendan Pierson
NEW YORK (Reuters) – A federal decide has thrown out a settlement that will have shielded the Sackler household, which owned OxyContin maker Purdue Pharma, from future lawsuits over opioids, upending the corporate’s plan to reorganize in chapter court docket.
U.S. District Decide Colleen McMahon in Manhattan mentioned in a written ruling on Thursday that the chapter court docket didn’t have the authorized authority to launch the household from legal responsibility.
Purdue and attorneys for the Sacklers couldn’t instantly be reached for remark Thursday night.
The corporate has been accused of pushing huge quantities of its OxyContin ache drug on sufferers, whereas underplaying its potential for habit and abuse, which it has denied. It filed for chapter in 2019, going through a slew of authorized claims over the drug.
U.S. Chapter Decide Robert Drain in September authorised a reorganization plan, together with a settlement of the lawsuits towards the corporate during which the Sacklers would pay $4.5 billion and be launched from future legal responsibility.
McMahon, nevertheless, mentioned chapter regulation didn’t permit such a launch, because the Sacklers had not filed for chapter.
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