New York Judge Overturns Purdue Opioid Settlement

Judge Colleen McMahon of the U.S. District Court for the Southern District of New York has overturned Purdue Pharma’s opioid settlement. The judge ruled the restructuring plan that had been approved in September should not be allowed because it released the Sackler family, owners of Purdue, from liability in civil opioid cases.

The Sacklers did not file for personal bankruptcy protection. However, they made protection from liability an absolute requirement in exchange for committing $4.5 billion to the settlement agreement. Judge McMahon said the bankruptcy code does not explicitly permit such an agreement.

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