DOJ moves to block Purdue Pharma deal shielding Sacklers © Getty The Department of Justice (DOJ) moved on Wednesday to block Purdue Pharma’s controversial bankruptcy deal that shields members of the Sackler family from being sued in future opioid-related lawsuits. U.S Trustee for the DOJ William Harrington filed a request for an expedited stay to prevent the OxyContin-maker’s agreement that a federal judge signed off on earlier this month from going into effect. The DOJ throughout Purdue Pharma’s bankruptcy has blasted the settlement as “unlawful” and “unconstitutional.” Most state attorneys general have backed the settlement, saying it will lessen ongoing legal battles and allow funding to get to opioid treatment programs more quickly. But the attorneys general in Maryland, D.C. and Washington state have also appealed, arguing that it lets members of the Sackler family avoid responsibility. What’s in the agreement: Through the deal in question, members of the Sackler family would give up ownership of Purdue Pharma and supply more than $4 billion in cash and charitable assets over nine years. The company’s assets would be sent to a new company focused on fighting opioid addiction. In exchange, the family members would avoid admitting wrongdoing and be granted immunity against future legal claims. Purdue’s response: In a statement, Purdue Pharma said it understands the views of those against the deal “are deeply held,” but emphasized that 95 percent of the company’s creditors and 43 states and territories support the plan as “the best option for people and communities suffering from the opioid crisis.” “Now is the time for the remaining objectors to join the overwhelming majority of creditors so that billions of dollars can begin to flow as quickly as possible,” the company said. Read more here. |
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