Purdue Settlement Talks With Sacklers Extended to November

Purdue Pharma LP said its making progress in settlement talks with members of the Sackler family who own the company and won another extension of a breathing spell that’s shielded the family from civil lawsuits for years.

Judge Sean Lane said Monday he’d extend through Nov. 1 an injunction that has paused suits against the Sacklers in order to continue facilitating talks with states, opioid victims and other creditors.

An injunction was put in place after Purdue filed Chapter 11 in 2019 and been extended multiple times after the US Supreme Court scuttled a $6 billion deal that would have settled civil suits accusing Purdue’s owners of helping fuel the nation’s opioid epidemic. Members of the Sackler family have denied wrongdoing and previously said they’d support “a resolution that provides substantial resources to help combat a complex public health crisis.”

Purdue’s request to extend the injunction several more weeks was supported by two mediators who have been overseeing the settlement discussions and the vast majority of creditors involved in the talks, Purdue lawyer Eli Vonnegut said during a court hearing. The extension was supported by a committee representing opioid victims as well as most states, though it was opposed by a handful of other states.

The mediation may not result in a new settlement. However, Vonnegut said most involved in the talks believe enough progress has been made to warrant a further litigation pause.

Purdue’s request was opposed by Rhode Island, Washington and Maryland. The injunction pausing civil lawsuits has meant that Sackler family members have “thus far evaded the consequences of their misconduct for years,” Washington said in a court filing.

The case is Purdue Pharma LP, number 19-23649, U.S. Bankruptcy Court for the Southern District of New York.

Top photo: Purdue Pharma’s former headquarters in Stamford, Connecticut in 2019.