‘Not Allowed Off The Hook’: Purdue Creditors Ask Court To Sue Sackler Family Members

July 9, 2024   |   Tags:
'Not Allowed Off The Hook': Purdue Creditors Ask Court To Sue Sackler Family Members

Nearly two weeks after the US Supreme Court tossed out a $6 billion bankruptcy settlement agreed upon by the Sackler family to address claims that the OxyContin manufacturer fueled America's opioid crisis, the court-appointed committee of Purdue creditors on Monday asked a US bankruptcy court if they could sue individual Sackler family members. The creditors allege that the Sacklers illegally transferred billions of dollars to offshore private trusts before Purdue's 2019 bankruptcy filing.

A court filing from Purdue's creditors, which include individuals harmed by the opioid epidemic as well as insurers and companies with opioid claims, requested the urgent need to sue Sackler family members and ensure they are not "allowed 'off the hook' for their grotesque misconduct in creating and fueling the opioid crisis," according to Reuters

If a new round of mediation between the estate, which represents the Purdue company and not the Sackler family, fails, creditors could begin the process of suing the family to recover more than $11.5 billion. Creditors allege the family shifted Purdue profits into offshore trusts ahead of the company's 2019 bankruptcy.

In late June, the Supreme Court ruled that the $6 billion settlement deal would be terminated because it would have improperly shielded members of the Sackler family from future lawsuits. 

Source: Bloomberg

Sackler family lawyers said the creditor's court filing was "riddled with factual errors" and "ignores that about half the money was paid in taxes and is contrary to the goal of working together towards a resolution that provides billions of dollars for communities and people in need."

"The company has asked US Bankruptcy Judge Sean H. Lane to appoint a pair of mediators to oversee talks involving the creditors committee, victim groups, the Sacklers and other parties. The goal is to come to a new deal that would comply with the US Supreme Court ruling," Bloomberg noted. 

Tyler Durden Tue, 07/09/2024 - 10:25


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