mcloudy.png
Saturday October 16th, 2021 8:37AM

Judge: Purdue Pharma can resume groundwork on its settlement

By The Associated Press
Related Articles
  Contact Editor

A federal judge on Wednesday allowed Purdue Pharma to resume its work carrying out the recent $10 billion settlement plan that allowed the Oxycontin maker to emerge from bankruptcy.

The decision from U.S. District Court Judge Colleen McMahon denied a request from an arm of the U.S. Department of Justice to keep Purdue's work on hold pending an appeal of the settlement. McMahon partially reversed a position she took over the weekend when she temporarily halted the company's efforts at the request of the U.S. Bankruptcy Trustee.

Before Purdue can resume, the judge said she needs to extract a promise from the company and the other entities that agreed to the settlement. They would pledge not to undermine the appeal in the future by claiming the settlement process had progressed too far to stop.

Lawyers for Purdue said in court this week that the company and other parties who supported the settlement — a group that includes Sackler family members and most states — are willing to sign such a pledge. Lawyers said they want to be ready to get money quickly to governments and victims of the opioid crisis if the settlement stands.

Last month, a bankruptcy judge in White Plains, New York, approved Purdue's plan to settle 3,000 lawsuits and more than 100,000 other claims for damages the company faced related to the toll of the opioids crisis. Prescription and illicit opioids have been linked to more than 500,000 deaths in the U.S. over the last two decades.

The bankruptcy settlement calls for turning Purdue into a new entity with its profits being used to fight the epidemic. It also calls for members of the Sackler family to contribute $4.5 billion in cash and charitable assets, and to give up ownership of Purdue.

A provision that is a driving force behind the appeal gives the Sacklers protection from civil lawsuits related to opioids. In a hearing Tuesday in her New York courtroom, McMahon said she intended to cast aside other legal arguments.

“That’s the big dog here," she said. “That presents a pure question of law.”

The appeal in federal district court is just one part of a complicated legal case.

U.S. Bankruptcy Judge Robert Drain, who approved Purdue's settlement, has scheduled a hearing for next month that also hinges on the question of whether the plan should be put on hold. He's also being asked to send the case to U.S. Circuit Court, a move that would bypass McMahon's court. But the appeals judges would have to agree to take it.

The U.S. Bankruptcy Trustee's office did not comment immediately Wednesday on what step it might take next.

  • Associated Categories: Associated Press (AP), AP National News, AP Business, AP Business - Corporate News
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Taiwan tensions raise fears of US-China conflict in Asia
After sending a record number of military aircraft to harass Taiwan over China’s National Day holiday, Beijing has toned down the saber rattling but tensions remain high, with the rhetoric and reasoning behind the exercises unchanged
9:11PM ( 4 minutes ago )
Dimitrov downs top-seeded Medvedev in 3 sets at Indian Wells
Grigor Dimitrov beat top-seeded Daniil Medvedev 4-6, 6-4, 6-3 in the fourth round of the BNP Paribas Open, extending the parade of upsets that has knocked out several top players
8:50PM ( 25 minutes ago )
Airman convicted of kidnapping, killing Mennonite teacher
Jurors in Arizona have convicted a U.S. Air Force airman of first-degree murder in the death of a Mennonite woman who was living in New Mexico
8:50PM ( 25 minutes ago )
Associated Press (AP)
Border residents rejoice as US says it will lift travel ban
Beleaguered business owners and families separated by COVID-19 are celebrating after the Biden administration says it will reopen U.S. land borders to nonessential travel next month, ending a 19-month freeze
7:55PM ( 1 hour ago )
Assailant with bow and arrows kills 5 people in Norway
A man armed with a bow and arrows killed five people and wounded others near the Norwegian capital of Oslo
6:53PM ( 2 hours ago )
Chicago police union head urges cops to defy vaccine mandate
The head of the Chicago police officers union has called on its members to defy the city’s requirement to report their COVID-19 vaccination status before the weekend or be placed on unpaid leave
6:29PM ( 2 hours ago )
AP National News
From cars to gasoline, surging prices match a 13-year high
Consumer prices rose 0.4% last month, slightly higher than August’s gain and pushing annual inflation back to the highest increase in 13 years
7:28PM ( 1 hour ago )
The Latest: Montana at new high for COVID hospitalizations
Montana has set a new high for the number of people hospitalized with COVID-19 — 510
7:16PM ( 2 hours ago )
UN investigator: North Korea kids and elderly risk starving
A U.N. investigator says North Koreans living under strict pandemic restrictions are facing a growing food crisis, and the most vulnerable children and elderly people in the isolated Asian nation are at risk of starvation
6:30PM ( 2 hours ago )
AP Business
Climate change: North Carolina gov signs major energy law
A milestone energy bill that targets sharply reducing greenhouse gas emissions from North Carolina power plants has become law
2:50PM ( 6 hours ago )
Daily Wire launches conservative book publishing imprint
A publishing division is being started by the conservative media company the Daily Wire
2:04PM ( 7 hours ago )
JPMorgan's 3Q profits rise, but low rates weigh on revenue
JPMorgan Chase says profits rose 24% in the third quarter, largely driven by one-time items that boosted its results, as the bank struggled to grow revenues with interest rates at near-zero levels
1:05PM ( 8 hours ago )
AP Business - Corporate News
Dimitrov downs top-seeded Medvedev in 3 sets at Indian Wells
Grigor Dimitrov beat top-seeded Daniil Medvedev 4-6, 6-4, 6-3 in the fourth round of the BNP Paribas Open, extending the parade of upsets that has knocked out several top players
8:50PM ( 25 minutes ago )
Airman convicted of kidnapping, killing Mennonite teacher
Jurors in Arizona have convicted a U.S. Air Force airman of first-degree murder in the death of a Mennonite woman who was living in New Mexico
8:50PM ( 26 minutes ago )
Wildfire rages in Southern California coastal mountains
A wildfire raging through Southern California coastal mountains is a threat to ranches and rural homes and is keeping a major highway shut down
8:31PM ( 44 minutes ago )
Interim head coach Rich Bisaccia ready to guide Raiders
Rich Bisaccia, now in his 20th season as an NFL coach, is the interim head coach of the Las Vegas Raiders
8:30PM ( 46 minutes ago )
Arizona jury convicts airman in death of Mennonite woman
Jurors in Arizona have convicted a U.S. Air Force airman of first-degree murder in the death of a Mennonite woman who was living in New Mexico
8:28PM ( 48 minutes ago )