(Reuters) — Purdue Pharma on Tuesday received U.S. court approval for a 60-day freeze on lawsuits against its owners, members of the wealthy Sackler family, in its first court appearance since a landmark Supreme Court ruling upended its bankruptcy settlement.
U.S. Bankruptcy Judge Sean Lane granted an injunction at a court hearing in White Plains, New York, saying that a litigation ceasefire will give Purdue a chance to renegotiate a comprehensive settlement of lawsuits alleging that its painkiller OxyContin spurred an opioid addiction crisis in the U.S.
The U.S. Supreme Court ruled June 27 that Purdue Pharma’s bankruptcy settlement cannot shield the Sacklers, who did not file for bankruptcy themselves.
The ruling sent Purdue back to the drawing board after nearly five years in bankruptcy and imperils billions of dollars in funding that the company and the Sacklers had promised to pay toward addressing the harms from the crisis.
Lawsuits against Purdue and Sackler family members by state and local governments, as well as by individual plaintiffs, have accused them of fueling the opioid crisis through deceptive marketing of its pain medication. The company pleaded guilty to misbranding and fraud charges related to its marketing of OxyContin in 2007 and 2020.
Purdue’s attorney, Marshall Huebner, said the company will engage in “a high-speed, high-stakes mediation” with the Sacklers, state and local governments, and other stakeholders. Protecting the Sacklers during a “modest” 60-day negotiating period will give Purdue a real chance to negotiate a new bankruptcy settlement and put money toward stopping opioid overdoses and treating addiction, Mr. Huebner said.
“Every single day of delay continues to come at a tragic, tragic cost,” he said.
