Purdue Pharma Judge Questions DOJ’s Opposition of Sackler Deal

The Department of Justice’s bankruptcy watchdog may have exceeded its authority by challenging Purdue Pharma LP’s bankruptcy plan, the retired judge who approved the agreement said.

The US Trustee objected to Purdue’s bankruptcy plan during the company’s Chapter 11 case, and has since continued with an appeal to the US Supreme Court. The plan improperly provides liability releases for members of the wealthy Sackler family who own Purdue, the US Trustee has argued.

Robert Drain, the bankruptcy judge who signed off on the deal in 2021, said Wednesday that he has “a lot of respect for the US Trustee,” but ...