The federal government’s proposed settlement with the Sackler family members who own OxyContin maker Purdue Pharma LP ran into opposition from company creditors worried that less money will be left over for them, WSJ Pro Bankruptcy reported. An official committee that represents Purdue’s creditors raised objections to the proposed settlement in the U.S. Bankruptcy Court in White Plains, N.Y., where Purdue sought chapter 11 protection last year under an onslaught of lawsuits accusing the company of helping fuel opioid addiction. Carrying out the settlement requires approval from the bankruptcy court. Action in the bankruptcy case involves both mediation and an investigation by the official creditors committee into the company’s owners and their vast wealth. Members of the Sackler family who served on Purdue’s board and were sued along with the company are, like Purdue itself, shielded against lawsuits while they try to come to terms with states, municipalities, Native American authorities and other creditors. Without filing for bankruptcy, the billionaire Sacklers are sharing the company’s legal shield temporarily, and hope to negotiate a permanent reprieve from lawsuits as part of Purdue’s bankruptcy plan.
