Purdue Opinion Deepens Circuit Split Over Bankruptcy Releases

Purdue Pharma LP’s appeals court win granting its Sackler family owners immunity from future opioid lawsuits deepens a circuit split over controversial litigation releases.

The opinion Tuesday from the US Court of Appeals for the Second Circuit reversed a district court decision and found the drugmaker’s owners, members of the billionaire Sackler family, can be shielded against future opioid lawsuits as part of a bankruptcy plan. The Sacklers, in exchange, have agreed to pay up to $6 billion and give up their ownership of the company to resolve widespread litigation accusing them of contributing to the national opioid epidemic.

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