A federal court invalidated a nearly $4.5 billion deal that legally safeguarded members of the Sackler family accused of contributing to the U.S. opioid epidemic, a move that threatened to derail Purdue Pharma LP’s bankruptcy restructuring.
In a written judgment issued on Thursday, U.S. District Judge Colleen McMahon stated that the New York bankruptcy court that authorized the deal lacked the power to offer the Sackler the legal protection against future opioid lawsuits that was the centerpiece of Purdue’s restructuring.Purdue has announced that it would appeal the ruling.
“There cannot be two kinds of justice: one for regular people and another for billionaires,” Ferguson added. “If necessary, I’m ready to take this lawsuit all the way to the Supreme Court in order to hold the family accountable.”The drugmaker’s restructuring was approved by more than 95% of creditors, the majority of whom were plaintiffs suing Purdue and the Sackler.
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