Judges on a U.S. appeals court appeared reluctant on Friday to revive a legal shield that would protect the Sackler family that owns Purdue Pharma from lawsuits related to the prescription opioid OxyContin, a key to ending the company's bankruptcy.
During oral arguments, a three-judge panel on the U.S. 2nd Circuit Court of Appeals probed the limits of a bankruptcy judge to protect non-bankrupt parties like the wealthy Sacklers, in the absence of clear legal authority.
The Office of the U.S. Trustee, an arm of the Department of Justice that acts as a watchdog in bankruptcy cases, argued against reviving the legal shield. Thousands of lawsuits have blamed OxyContin and Purdue's marking of the addictive pain medicine for starting and fueling a U.S. opioid epidemic that has caused some 500,000 overdose deaths over the past two decades, according to U.S. data. The litigation drove Purdue to bankruptcy in 2019.
Purdue reached a bankruptcy settlement of opioid claims, but that deal was upended in December, when a federal judge ruled that the Connecticut-based company could not also wipe away lawsuits filed against its non-bankrupt owners.
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