Purdue Pharma Can Protect Sackler Owners in Opioid Bankruptcy, Court Rules

Purdue Pharma Can Protect Sackler Owners in Opioid Bankruptcy, Court Rules
Bottles of prescription painkiller OxyContin pills, made by Purdue Pharma LP sit on a counter at a local pharmacy in Provo, Utah, on April 25, 2017. George Frey/Reuters
Reuters
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NEW YORK—Bankrupt OxyContin maker Purdue Pharma can shield its owners, members of the wealthy Sackler family, from opioid lawsuits in exchange for a $6 billion contribution to the company’s broader bankruptcy settlement, a U.S. appeals court ruled on Tuesday.

The New York-based 2nd U.S. Circuit Court of Appeals said that U.S. bankruptcy law allows legal protections for non-bankrupt parties, like the Sacklers, in extraordinary circumstances.