The maker of OxyContin sought a ruling that would prevent the Sackler family from being delayed in the future.
The federal judge in the United States denied a sweeping bankruptcy stability was approached by the manufacturer OxyContin Purdue Pharma who sought to settle thousands of lawsuits related to the company’s actions in the opioid epidemic.
Federal Colleen Judge McMahon on Thursday ruled that the most important part of the resolution – that members of the commission. Sackler’s family, owned by the company, could not face a variety of charges – it was not legal.
In his ruling, he argued that because the banking code “does not provide such authority, the law confirming the order should be repealed”.
43 U.S. states had already ratified the plan but the Ministry of Justice and a few other countries opposed it. They claimed that it violated the victims’ right to privacy.
U.S. Attorney General Merrick Garland praised Thursday’s ruling.
“The bankruptcy court had no jurisdiction to remove victims of the opioid crisis and their right to sue the Sackler family,” he said.
The same settlement, which was approved by a judge in September, saw the Sackler family relinquish ownership of Perdue Pharma and pay $ 4.5bn. Under the agreement, the company will be sold by 2024 to be replaced by a new trust-based organization. Participation in the sale of opioid products will be prohibited.
The benefits from the agency will help address the current crisis in the US, which has led to more than 500,000 die from drug overdose. Under the agreement, the company will also develop new anti-depressant and anti-alcohol drugs and provide them with or without compensation.
In his judgment, Judge McMahon acknowledged that overcoming the Sacklers’ defense “would likely lead to a reorganization of a well-planned strategy that could lead to many dramatic consequences, including funding for programs needed to eradicate opioid intoxication.”
Meanwhile, Steve Miller, chairman of Purdue, said the ruling would “delay, and possibly end, the potential for debtors, communities, and individuals to receive billions to end the opioid crisis”.
The company is appealing the decision.
For his part, Connecticut Attorney General William Tong, who was one of the government officials who called for the agreement to be dissolved, said the ruling was a “victory for justice and accountability”.
Mr Tong said the ruling “would also open the door to Purdue’s fraudulent retaliation and force the Sackler family to deal with the pain and destruction they caused.”
Amid a host of civil and local lawsuits, Purdue Pharma last year pleaded guilty to three counts of conspiracy to defraud OxyContin, a high-dose painkiller.
