Purdue’s settlement talks with the Sacklers have been extended into November

Purdue Pharma LP said it is making progress in settlement talks with members of the Sackler family who own the company and won another extension to a breathing period that has shielded the family from civil lawsuits for years.

Judge Sean Lane said Monday he will extend until Nov. 1 an order that halted the lawsuits against the Sacklers to continue facilitating talks with states, opioid victims and other creditors.

An injunction was instituted after Purdue filed for Chapter 11 in 2019 and was extended several times after the U.S. Supreme Court threw out a $6 billion settlement that would have settled civil lawsuits accusing its owners of Purdue that it is helping to fuel the nation’s opioid epidemic. Members of the Sackler family have denied wrongdoing and previously said they would support “a resolution that provides substantial resources to help combat a complex public health crisis.”

Purdue’s request to extend the order by several weeks was supported by two mediators who oversaw settlement talks and the vast majority of creditors involved in the talks, Purdue attorney Eli Vonnegut said during a court hearing. The expansion was supported by a committee representing opioid victims as well as most states, although it was opposed by a handful of other states.

Mediation cannot lead to a new agreement. However, Vonnegut said most involved in the talks believe enough progress has been made to warrant another pause in the litigation.

Purdue’s application was opposed by Rhode Island, Washington and Maryland. The stay order meant the Sacklers “have for years now avoided the consequences of their wrongdoing,” Washington said in a court filing.

The case is Purdue Pharma LP, number 19-23649, U.S. Bankruptcy Court for the Southern District of New York.

Top photo: Purdue Pharma’s former headquarters in Stamford, Connecticut in 2019.

Copyright 2024 Bloomberg.