Purdue Pharma Seeks More Time for Settlement Talks With Sacklers

Purdue Pharma LP has asked to extend to early December settlement talks with members of the Sackler family who own the company after its prior bankruptcy plan was shot down by the US Supreme Court in June.

With mediation at a “fluid and critical juncture,” extending the talks, as well as a preliminary injunction protecting Sackler family members from opioid-related litigation, for 35 more days will prevent jeopardizing the ability to achieve a broad consensus, Purdue said in a motion filed Monday in the US Bankruptcy Court for the Southern District of New York.

“Simply put, the complexities of crafting a broadly supported consensual resolution are immense and require the undistracted focus of all stakeholders,” Purdue said.

Purdue in September won a similar extension to Nov. 1 from Judge Sean Lane, despite opposition from Rhode Island, Washington and Maryland, which are among many states that sued the OxyContin maker over its role in pushing opioid sales.

Since the last mediation extension, “material progress” has been made but details can’t be revealed under a confidentiality agreement, Purdue said. The company seeks to extend mediation to Dec. 6.

The preliminary injunction protecting Sackler family members from civil suits was approved after Purdue filed for Chapter 11 in 2019 under the weight of litigation accusing them of fueling the national opioid epidemic.

If the preliminary injunction were lifted, more than 500 civil suits brought by government entities could resume, as well as roughly 675 suits against Purdue’s related parties that include the Sacklers, the company said.

A $6 billion deal that would have settled suits against Purdue and Sackler family members was approved by the bankruptcy court, but the Supreme Court rejected the deal in June.

Sackler family members have denied wrongdoing and have previously said they would support a deal that “provides substantial resources to help combat a complex public health crisis.”

Pudue is represented by Davis Polk & Wardwell LLP.

The case is Purdue Pharma LP, Bankr. S.D.N.Y., No. 19-23649, 10/21/24.