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DOJ Claims Purdue Pharma’s Bankruptcy Plan Is Unconstitutional

Two divisions of the U.S. Department of Justice say the Sackler family’s settlement proposal is both unconstitutional and illegal, according to NPR. The proposal calls for the Sackler family, who own Purdue Pharma and have earned more than $10 billion from opioid sales, to pay about $4.3 billion to help compensate families and communities devastated by oxycontin, an opioid that has caused devastation across America.

In return, the Sacklers and many of their associates — who have not filed for bankruptcy — would be protected from future opioid lawsuits and would not have to admit to any wrongdoing, according to NPR.

U.S. trustee William Harrington said the settlement is "impermissible” and accuses the Sacklers of avoiding liability for their alleged roles in sustaining the opioid epidemic. The U.S. attorney for the Southern District of New York also weighed in, saying the proposal infringes on due process rights for families and communities who have potential opioid claims. 

Both objections were filed in the court of federal bankruptcy Judge Robert Drain, “who is widely expected to approve the settlement plan at a confirmation hearing” scheduled for August 9, 2021, NPR reported.  

 

SOURCE: Becker’s Hospital Review July 20, 2021