Victims of opioid addiction are objecting to the U.S. government’s request to send Purdue Pharma’s pending bankruptcy plan for review before the Supreme Court, which would delay long-awaited disbursements under a $6 billion settlement for addiction victims and state governments, WSJ Pro Bankruptcy reported. Purdue and tens of thousands of addiction victims, state governments and municipalities last year reached a global settlement worth $6 billion over the pharmaceutical company’s alleged role in fueling the nation’s opioid crisis. The settlement would help end a yearslong legal battle that led to Purdue’s bankruptcy and would shield members of the Sackler family, who own the company, from future opioid-related liabilities. Earlier this month, the federal government filed an appeal to the Supreme Court to review the $6 billion settlement, suggesting that the legal waivers for the Sacklers may not conform with U.S. law. If the court agrees to hear the case, it could take until the end of next year for a decision to be made, and even longer for funds to flow from the settlement. Victims and state governments, who have sued Purdue over damages caused by its prescription opioid OxyContin, are objecting to the delays, saying they are in need of immediate receipt of the settlement funds promised by Purdue and the Sacklers. A group of state governments that have sued Purdue also argued that the federal government is putting lives in danger while it focuses on whether the U.S. bankruptcy code allows releases for members of the Sackler family, who haven’t filed for bankruptcy themselves.
