Lawyers for Purdue Pharma, victims of the opioid crisis and governments have asked a federal appeals panel to pave the way for a settlement of claims against the OxyContin maker.
FILE - Jayde Newton helps to set up cardboard gravestones with the names of victims of opioid abuse outside the courthouse where the Purdue Pharma bankruptcy is taking place in White Plains, N.Y., on Aug. 9, 2021. A federal appeals panel is scheduled to hear arguments on whether members of the Sackler family can be granted protection from lawsuits as part of a bankruptcy settlement for the company they own, OxyContin maker Purdue Pharma.
But the U.S. Bankruptcy Trustee's Office, an arm of the Justice Department, has continued pushing back, asserting it's improper to provide a legal shield for members of the wealthy family who have not themselves filed for bankruptcy protection. Purdue lawyer Marshall Huebner pointed out that unlike other parties, the Bankruptcy Trustee's office and federal government are not in line to receive any money from the settlement. He told the judges that allowing lawsuits against the Sacklers to move forward might not result in more money to fight the opioid crisis — in part because most of the family's wealth is in trusts, much of it overseas.All three judges asked pointed questions on the positions of both Huebner and Shih.
Most of the Sacklers' money also would go to fighting the epidemic, but at least $750 million would be distributed to some individual victims and their families.
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