Three states and a handful of cities and counties have objected to a plan that would estimate the total value of legal claims against bankrupt opioid manufacturer Insys Therapeutics Inc., Law.com reported. Insys, which filed for chapter 11 protection on June 10, filed a motion to estimate the costs of about 1,000 lawsuits brought against the Phoenix-based company over the opioid crisis. The procedure would preserve funds and “fix aggregate amounts of particular categories of claims on an expedited basis,” according to the motion. But a hodgepodge of plaintiffs suing Insys, such as the states of Florida, New Jersey and New York, filed objections on Tuesday insisting that the plan was premature and procedurally improper and would reduce their potential compensation without due process. “The debtors ask this court and all of their many creditors, including sovereign governmental entities such as the state, to go through a truncated, procedurally backward, and ludicrously expensive estimation process,” wrote Florida Attorney General Ashley Moody. “Rather, the estimation motion is a clear attempt by the debtors to reduce their liabilities without affording any due process to claimants.” A hearing on the plan is set for July 2.
