Purdue Pharma’s Opioid Settlement Plan Faces DOJ Objections

July 20, 2021, 3:15 AM

Purdue Pharma LP’s bankruptcy plan to wipe out lawsuits against the opioid maker has run into objections from the U.S. Justice Department, which is challenging the broad protections it provides to members of the Sackler family who own the drugmaker.

Lawyers for U.S. Attorney Audrey Strauss in Manhattan and the Southern District of New York’s bankruptcy trustee contend litigation releases granted to the Sacklers as part of Purdue’s Chapter 11 plan are too expansive to pass muster with the U.S. Constitution.

The releases deprive victims of the opioid crisis “of their property rights without sufficient notice or a sufficient ...

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