Purdue Pharma has been given a crucial extension by U.S. Bankruptcy Judge Sean Lane to continue mediation efforts regarding its ongoing litigation over OxyContin. The company has been granted an additional 18 days to negotiate a comprehensive settlement. This extension comes after a significant setback in June when the Supreme Court rejected a bankruptcy plan proposed by Purdue. This plan would have allocated billions of dollars from the wealthy Sackler family to combat opioid addiction, while also shielding them from civil lawsuits related to their alleged role in the opioid crisis.
The Supreme Court’s decision, which came in a 5-4 vote, was a victory for a group of opioid victims who opposed the settlement. They sought to continue pursuing legal action against the Sackler family. This extension is seen as a crucial step for Purdue to revise its approach after nearly five years of complex bankruptcy proceedings, further complicated by the Supreme Court’s decision concerning non-debtor legal claim releases.
With support from most U.S. states and various local governments, the additional time aims to preserve as much of Purdue’s initial settlement plan as possible, according to Reuters, citing Purdue’s attorney. However, some opposition persists, notably from Maryland and Nassau County, New York, who criticize the ongoing delays. They argue that these delays could potentially prolong litigation against the Sacklers, who have been accused of contributing to the opioid crisis through deceptive marketing practices.
In July, Purdue Pharma secured a 60-day suspension on lawsuits targeting the Sackler family. This marked the company’s first court appearance since the Supreme Court ruling disrupted its bankruptcy settlement. U.S. Bankruptcy Judge Sean Lane granted the injunction during a hearing in White Plains, New York, to facilitate a renegotiated settlement addressing the lawsuits.
