A federal judge has overturned a roughly $4.5 billion settlement that legally shielded members of the Sackler family who stand accused of helping fuel the US opioid epidemic, a decision that threatened to upend the bankruptcy reorganisation of their company, OxyContin maker Purdue Pharma.
US District Judge Colleen McMahon said in a written opinion on Thursday the New York bankruptcy court that approved the settlement did not have authority to grant the Sacklers the legal protection from future opioid litigation that formed the linchpin of Purdue’s reorganisation.
Purdue said it would appeal the decision.
The Sacklers had insisted on the legal shields, known as nondebtor releases because they protect parties that have not filed for bankruptcy themselves, in exchange for contributing $4.5 billion towards resolving widespread opioid litigation.
The Sacklers threatened to walk away from the settlement absent the guaranteed legal protections.
US Attorney General Merrick Garland said in a statement he was pleased with the ruling.
"The bankruptcy court did not have the authority to deprive victims of the opioid crisis of their right to sue the Sackler family," Mr Garland said.
More than 95 per cent of creditors – in this case predominantly plaintiffs suing Purdue and the Sacklers – voted to approve the drugmaker’s reorganisation.
But eight states, Washington, DC, Seattle and more than 2,600 personal injury claimants voted against Purdue’s reorganisation, Ms McMahon said. The US Justice Department’s bankruptcy watchdog and the Manhattan US attorney’s office also objected.
Ms McMahon raised questions about more than $10 billion Purdue distributed to the Sacklers spanning a roughly decade-long period that preceded the company’s bankruptcy filing.
The Sacklers have faced allegations, which they deny, that they authorised the financial transfers to prevent the money from being drained in future litigation against Purdue. The Sacklers have said much of the money went towards taxes and investments, as opposed to their pockets.
Purdue filed for bankruptcy in September 2019 in the face of 3,000 lawsuits accusing the company and Sackler family members of contributing to a public health crisis that has claimed the lives of about 500,000 people since 1999.
The litigation accused the company and family members of aggressively marketing OxyContin while downplaying its addiction and overdose risks. The company and family members have denied the allegations.
US Bankruptcy Judge Robert Drain in White Plains, New York, agreed early in Purdue's court restructuring to halt litigation against the company and Sackler family members, who had not filed for Chapter 11 protection themselves.
Mr Drain said it was clear the wrongful marketing of the company's opioid products contributed to the addiction crisis that touched every corner of the country.
But he overruled objections to the legal releases shielding the Sacklers. Mr Drain predicted that denying the releases would unravel Purdue’s reorganisation – settlement aimed at steering funds toward communities reeling from the opioid epidemic – and result in the company’s liquidation, leaving little to nothing for victims.
Ms McMahon, though, found that the Bankruptcy Code “does not authorise” granting such nonconsensual third-party releases.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
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UAE currency: the story behind the money in your pockets
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
The five pillars of Islam
Employment lawyer Meriel Schindler of Withers Worldwide shares her tips on achieving equal pay
Do your homework
Make sure that you are being offered a fair salary. There is lots of industry data available, and you can always talk to people who have come out of the organisation. Where I see people coming a cropper is where they haven’t done their homework.
Don’t be afraid to negotiate
It’s quite standard to negotiate if you think an offer is on the low side. The job is unlikely to be withdrawn if you ask for money, and if that did happen I’d question whether you want to work for an employer who is so hypersensitive.
Know your worth
Women tend to be a bit more reticent to talk about their achievements. In my experience they need to have more confidence in their own abilities – men will big up what they’ve done to get a pay rise, and to compete women need to turn up the volume.
Work together
If you suspect men in your organisation are being paid more, look your boss in the eye and say, “I want you to assure me that I’m paid equivalent to my peers”. If you’re not getting a straight answer, talk to your peer group and consider taking direct action to fix inequality.
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5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m; Winner: AF Rasam, Tadhg O’Shea, Ernst Oertel
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m; Winner: Mujeeb, Richard Mullen, Salem Al Ketbi
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m; Winner: Jawal Al Reef, Antonio Fresu, Abubakar Daud
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m; Winner: Ashton Tourettes, Pat Dobbs, Ibrahim Aseel
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m; Winner: Nibraas, Richard Mullen, Nicholas Bachalard
