Two dozen state attorneys general are trying to end bankruptcy protections for Purdue Pharma LP’s controlling Sackler family, saying that shielding them from lawsuits during settlement talks sends the wrong message about the justice system, WSJ Pro Bankruptcy reported. California, New York and 22 other states filed court papers in Purdue’s bankruptcy case seeking permission to resume lawsuits against nine members of the Sackler family who own the opioid manufacturer. Protecting the family members, who haven’t declared bankruptcy themselves, gives the impression “that wealthy people can avoid having to answer for alleged wrongdoing,” according to a Thursday court filing. Those lawsuits have been on hold since October, when the judge overseeing the chapter 11 proceedings extended to the family the same shield against litigation that Purdue got automatically when it filed for bankruptcy. “Our family continues to believe that the bankruptcy reorganization process is the most efficient and effective way to reach a resolution that delivers critical resources to the individuals, families and communities most in need,” a Sackler spokesperson said. Purdue has proposed a settlement of thousands of lawsuits from states, local governments and Native American tribes accusing the company of helping fuel drug addiction through misleading marketing of its flagship opioid, OxyContin.
