HE WHO HAS THE GOLD MAKES THE LAW –
May 30, 2023 – The second US circuit court of appeals in New York determined the company can shield its owners from legal claims in exchange for a $6bn contribution to the company’s broader bankruptcy settlement, in a ruling that also cleared the way for Purdue to settle lawsuits tied to America’s devastating opioid epidemic. The company has tried to use its bankruptcy to resolve thousands of lawsuits, many filed by state and local governments, alleging that OxyContin helped kickstart a crisis that caused more than 500,000 US overdose deaths over two decades. Purdue has pleaded guilty to charges related to its opioid marketing, while its owners, the wealthy Sackler family, have expressed regret but denied wrongdoing.
The ruling issued on Tuesday found that the legal claims against Purdue were inextricably linked to claims against its owners and allowing lawsuits to continue targeting them would undermine Purdue’s efforts to reach a bankruptcy settlement.
